Indian spacetech startups receive record funding amid government pressure

(MENAFN- IANS) Bengaluru, July 30 (IANS) India’s space technology sector is set to see a record funding of $126 million in 2023 — up 7 per cent from $118 million raised in 2022 and a whopping 235 per cent from $37.6 million raised in 2021 — a report released on Tuesday showed.

In 2024, annual funding for the sector amounted to USD 10.8 million.

Despite a global funding slowdown, the space technology sector is seeing growth, driven by significant government support and significant innovation, according to data from market intelligence firm Tracxn.

There are over 100 space technology startups, most of them founded in the last five years. The Rs 1,000 crore funding from the Union Budget is expected to give the industry a major boost, attracting more entrepreneurship and investments in the coming months.

The country currently boasts 55 active space assets, including communications, weather and Earth observation satellites.

“The significant funding and strategic investments that we are witnessing today are setting the stage for India to become a significant player in the global space industry,” said Neha Singh, co-founder of Tracxn.

As Singh noted, a combination of solid, early funding and supportive government policies will be key to spurring this growth and cementing India’s position as a leading hub for space exploration and technology.

In 2023, early-stage funding rounds attracted $120 million of the total $126 million, a significant increase compared to $114 million in 2022, an increase of 5%.

In 2024, early stage funding has reached $8.5 million to date.

Seed funding also saw a significant increase, from $4.3 million in 2022 to $5.3 million in 2023, an increase of 24%.

However, despite an increase in early-stage and seed funding, the nascent ecosystem of private sector participation in Indian space technology startups is yet to see any late-stage funding, the report said.

Skyroot Aerospace is the highest-funded space technology startup in India, with a total funding of $99.8 million, followed by Pixxel with $71.7 million and Agnikul with $61.5 million.

No other startup in this segment has raised more than $50 million in funding.

Despite a dynamic financing market, no acquisitions were recorded in 2024.

So far, its only acquisition was Arya’s 2022 purchase of Prakshep, a provider of satellite imagery to the agriculture industry.

Bengaluru tops the list of cities with the most funding for India’s space technology sector, followed by Hyderabad and Chennai.

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