Bangalore:
India’s space technology sector has seen a record funding of $126 million in 2023. This is a 7 percent increase from the $118 million raised in 2022 and a staggering 235 percent increase from the $37.6 million raised in 2021, it was announced today.
In 2024, year-to-date funding in this sector stands at $10.8 million.
Despite a global funding slowdown, the space technology sector is on the rise, driven by significant government support and key technological innovations, according to data provided by market research firm Tracxn.
There are over 100 space tech startups, most of which were established in the last five years, and the Rs 1,000 crore funding from the Union Budget is expected to attract more entrepreneurship and investment in the coming months, giving the industry a major boost.
The country currently operates 55 space assets, including communications, weather and Earth observation satellites.
“The significant funding and strategic investments we are seeing today are setting the stage for India to become a major player in the global space industry,” said Neha Singh, co-founder of Tracxn.
Singh noted that a combination of solid early stage funding and supportive government policies will be key to driving this growth and establishing India as a leading hub for space exploration and technology.
In 2023, the company expects to see impressive growth, with $120 million raised in early-stage rounds out of a total of $126 million raised, a 5% increase from $114 million in 2022.
As of 2024, early stage funding has reached $8.5 million.
Seed-stage funding will also increase significantly, rising from $4.3 million in 2022 to $5.3 million in 2023, marking a 24% increase.
However, despite this rise in early and seed stage funding, the nascent ecosystem for private sector participation in Indian space technology startups is yet to experience any late-stage funding, the report said.
Skyroot Aerospace tops the list as India’s most funded active space tech startup with total funding of $99.8 million, followed by Pixel with $71.7 million and Agnikul with $61.5 million.
No other startup in this space has raised more than $50 million.
Despite the active fundraising environment, 2024 saw no acquisitions.
Its only acquisition to date was in 2022 when Aria bought Plaksep, a satellite imagery provider to the agriculture industry.
Bengaluru tops the list of cities in India receiving the most funding in the space technology sector, followed by Hyderabad and Chennai.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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