Bengaluru, July 30: India’s space technology sector has achieved a record funding of $126 million in 2023, up 7 per cent from $118 million in 2022 and a staggering 235 per cent from $37.6 million in 2021, a report showed on Tuesday. In 2024, year-to-date funding for the 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.
Currently, India operates 55 space assets including communications, weather and Earth observation satellites. “The significant funding and strategic investments being seen 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, early stage rounds raised $120 million out of a total of $126 million, a notable growth of 5% from $114 million in 2022. In 2024, early stage funding has reached $8.5 million so far. Seed stage funding has also increased significantly, growing from $4.3 million in 2022 to $5.3 million in 2023, registering an increase of 24%. However, despite this growth in early and seed stage funding, the nascent ecosystem for private sector participation in space technology startups in India is yet to experience late stage funding, the report stated.
Skyroot Aerospace leads the list as India’s most funded active space tech startup with $99.8 million in total funding, followed by Pixel with $71.7 million and Agnikul with $61.5 million. No other startup in the space has raised more than $50 million. Despite the hot fundraising environment, there are no acquisitions expected in 2024.
The only acquisition so far has been Alia’s purchase of Prakshep, a satellite imagery provider to the agriculture industry, in 2022. In the list of cities in India that have attracted the most funding in the space technology sector, Bengaluru tops the list, followed by Hyderabad and Chennai.
Ian
