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 tech sector is on the rise, driven by significant government support and significant innovation, according to data from market research firm Tracxn. There are over 100 space tech startups, majority of which were founded in the last five years. AI and robotics companies dominate office space absorption in Bengaluru amid rapid global advancements in April-June quarter: report.
With Rs 1,000 crore funding in the Union Budget, the industry is expected to get a major boost in the coming months, attracting more entrepreneurship and investment. Currently, the country boasts of 55 operational space assets, including communications, weather and Earth observation satellites.
“The significant funding and strategic investments we are seeing are setting the stage for India to become a major player in the global space industry,” said Neha Singh, co-founder of Tracxn. A combination of solid early-stage funding and supportive government policies will be key to fueling this growth and establishing India as a leading hub for space exploration and technology, Singh noted.
In 2023, early-stage funding rounds have raised $120 million out of a total of $126 million, a notable 5% increase from $114 million in 2022. Early-stage funding has reached $8.5 million so far in 2024. Seed-stage funding has also increased significantly, growing from $4.3 million in 2022 to $5.3 million in 2023, a 24% increase.
However, despite this rise in early and seed stage funding, the nascent ecosystem for private sector participation in Indian space tech startups is yet to experience 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. Gaganyaan Mission: ISRO and NASA partner with US-based private company Axiom Space to send 1 Gaganyatri to the International Space Station.
No other startup in the space has raised more than $50 million. Despite the booming fundraising environment, 2024 is not seeing any acquisitions. The only acquisition so far is Arya’s acquisition of Prakshep, a satellite imagery provider to the agriculture industry, in 2022. In the list of most funded cities in India in the space tech space, Bengaluru tops the list, followed by Hyderabad and Chennai.
(The above story first appeared on LatestLY on Jul 30, 2024 01:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
