July 31, 2024: India’s spacetech sector has reached new heights with record-breaking funding of $126 million in 2023, a 7% increase from the $118 million raised in 2022 and a staggering 235% rise from $37.6 million in 2021, according to a recent report.
Despite a global slowdown in funding, India’s space tech sector has experienced an upward trend, driven by substantial government support and significant innovations. Market intelligence firm Tracxn revealed that year-to-date funding for 2024 stands at $10.8 million.
The sector boasts over 100 startups, the majority founded in the last five years. The Union Budget’s allocation of ₹1,000 crore is expected to further boost the industry, attracting more entrepreneurs and investors.
India currently has 55 active space assets, including communication, meteorological, and earth observation satellites. Neha Singh, Co-founder of Tracxn, stated, “The significant funding and strategic investments we’re seeing now are setting the stage for India to become a major player in the global space industry.”
Spacetech: Early-stage funding a major contributor to the growth with $120M Funding boost
Early-stage funding has been a major contributor to this growth, with $120 million of the total $126 million raised in 2023 coming from early-stage rounds. This marks a notable growth from $114 million in 2022, a 5% increase. As of 2024, early-stage funding has reached $8.5 million.
Seed-stage funding also saw a significant rise, growing from $4.3 million in 2022 to $5.3 million in 2023, a 24% increase. However, the nascent ecosystem for private sector participation in Indian space tech startups has yet to experience any late-stage funding.
Skyroot Aerospace leads as the highest-funded active spacetech startup in India, with overall funding of $99.8 million, followed by Pixxel at $71.7 million and Agnikul at $61.5 million. No other startup in this segment has raised funds above $50 million.
Despite the vibrant funding landscape, no acquisitions have been observed in 2024. The only acquisition to date is the 2022 purchase of Prakshep, a satellite imagery provider for the agricultural industry, by Arya.
Bengaluru leads the list of top-funded cities in India’s spacetech sector, followed by Hyderabad and Chennai.
The combination of solid early-stage funding and supportive government policies is key to driving this growth and establishing India as a leading center for space exploration and technology.
