The Rs 1,000-crore venture capital fund will give a major boost to the space tech ecosystem, providing a launchpad for the next crop of startups while ensuring the sector’s long-term success, founders have told Moneycontrol.
On October 24, the Union Cabinet approved a Rs 1,000-crore VC fund for the space sector. The indicative investment range will be between Rs 10-60 crore, the government said.
Private investors may also get an opportunity to invest in the fund, which is expected to drive innovation in satellite tech, launch vehicles and space application.
"This Rs 1,000-crore venture fund is exactly what India’s spacetech ecosystem needs right now. This will fuel innovation that can have a real-world impact not just here but globally,” Awais Ahmed, CEO of Bengaluru-based Pixxel, said.
India has the talent and the ambition to be a leader in space, and the move would help bridge the gap between bold ideas and execution, Ahmed said.
Also read: Space startup CEOs applaud Rs 1,000-crore VC fund, but say more govt investment needed for growth
Skyroot Aerospace CEO Pawan Kumar Chandana said the highly commendable initiative would significantly enhance the space ecosystem.
“Access to capital is crucial for the growth of space companies and this fund will have a powerful multiplier effect, driving a surge in private investments alongside, ensuring robust long-term success for the industry," Chandana said.
The fund could be the launchpad for the next wave of space companies, tackling everything from climate monitoring to satellite communications, Ahmed said. "We’ve been fortunate at Pixxel to have global backing but not every startup gets that chance,” he said.
The fund can help put India at the forefront of space technologies. “More importantly, it creates a space where smaller players with big ideas can finally get the runway they need to scale. We’re excited to see this boost for the entire industry. It’s a big win for everyone working in space tech, and it’s about time India took this leap," Ahmed said.
The fund will drive innovation and strengthen the entrepreneurial ecosystem across the space industry, Chaitanya Dora Surapureddy, CFO & co-founder, Dhruva Space, said. It will enable early the sector to focus on breakthrough technologies and market expansion, “allowing us to try and be ahead of the curve in the global market”, he said.
Bellatrix Aerospace co-founder and CEO Rohan Ganapathy said the fund will provide a crucial initial boost, particularly to early-stage companies. To compete globally, India might need to increase its investment over time. India’s aim to capture 10 percent of the global market share by 2030 hinges on substantial developments and innovations private players, which requires greater government support, he said.
The fund was first announced by Finance Minister Nirmala Sitharaman on July 23 in her Budget Speech. "With our continued emphasis on expanding the space economy by 5 times in the next 10 years, a venture capital fund of Rs 1,000 crore will be set up," Sitharaman said.
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