A key highlight of 2024 was the Indian government’s approval of a $119 Mn fund aimed at nurturing around 40 startups
Total funding raised by Indian spacetech startups fell 35% YoY to $81 Mn last year, even as the number of deals rose from 11 in 2023 to 14 in 2024
This dip in total funding can be attributed to the broader global funding slowdown but also underscores the need for strategic recalibration within the sector
The year 2024 marked a pivotal chapter for India’s spacetech sector. Despite global economic headwinds and funding challenges, the sector has demonstrated remarkable adaptability and innovation.
A key highlight of 2024 was the Indian government’s approval of a $119 Mn fund aimed at nurturing around 40 startups.
Aligned with the Indian Space Policy 2023, the initiative sets the stage for ambitious growth, aiming to scale the nation’s space economy from the current $8 Bn to $44 Bn by 2030.
Complementing this vision, programmes like the Biotechnology Industry Research Assistance Council (BIRAC) BIG grants, Design-Linked Incentive (DLI) schemes, and iDEX have also accelerated advancements across space, defence, and deep-tech domains.
The union cabinet also approved setting up a venture capital fund with a corpus of INR 1,000 Cr under the Indian National Space Promotion and Authorization Centre (IN-SPACe) this year.
While the spacetech sector saw support from the government, startups couldn’t garner much investor support. According to Inc42’s Indian Startup Funding Report 2024, total funding raised by Indian spacetech startups fell 35% YoY to $81 Mn last year, even as the number of deals rose from 11 in 2023 to 14 in 2024.
This dip in total funding can be attributed to the broader global funding slowdown but also underscores the need for strategic recalibration within the sector.
Suyash Singh, cofounder & CEO of GalaxEye Space, told Inc42, that the just-concluded year was a year of recalibration for spacetech—a step back to the funding spring ahead.”
According to him, the VC playbook is evolving, shifting from a SaaS-heavy focus to embracing deep tech. Investors have recognised that the sector demands patient capital but offers the promise of hockey-stick growth in return.
“With macro drivers like the government’s announcement of an INR 1,000 Cr spacetech VC fund, upcoming PPP programmes, and 2025 poised to be a year of defence sector reforms, we’re set to witness significant momentum in the coming year,” Vishesh Rajaram, managing partner at Speciale Invest said.
He added that one of the significant trends of 2024 was the growing appetite of investors to back deep-tech startups in their early stages.
Rajaram’s observation holds heft, given the rise in the number of deals in 2024.
Meanwhile, the CEO of GalaxEye said that deeptech investments accounted for 11% of all deals in India last year, up from 7% in 2019. “Funding for the sector has grown fivefold between 2020 and 2024 compared to the previous five years,” Singh said.
The space tech sector, according to Singh, continues to demonstrate resilience and innovation, even amidst fluctuating investment trends.
Despite the dip in funding, Singh of GalaxEye sees an opportunity for leaner innovation and strategic partnerships.
“As the global space economy grows towards $1.8 Tn by 2035, the Indian space industry is not merely adapting to challenges, it is leveraging them to create scalable, resilient, and globally relevant solutions,” Singh added.
Moving on, despite the overall decline in funding, two of the major startups in the sector secured funding last year:
GalaxEye Space: The imaging solutions pioneer raised $10 Mn in its Series A funding, led by a consortium of global investors including Mela Ventures, Speciale Invest, iDeaForge, Smarthya Investment Advisors and Infosys.
The fresh capital would help in accelerating the development of GalaxEye’s upcoming satellite, the ‘Drishti Mission,’ designed to deliver high-resolution, all-weather, multi-sensor data.
Pixxel: This hyperspectral imaging startup closed a $24 Mn Series B round from M&G Catalyst and Glade Brook Capital Partners, who joined existing backers Google, Radical Ventures, Lightspeed and others in the cap table.
The company is using the fresh funds to fast-track the launch of its planned constellation of 18 commercial hyperspectral satellites.
What’s In Store For 2025?
India’s spacetech sector is poised for transformative growth in 2025, with an ambitious goal of achieving a $44 Bn space economy by 2030. As per sectoral experts, building on the last few years’ progress, the focus will be on scaling innovations and fostering collaborations to drive advancements.
Key government initiatives, including the deployment of a INR 1,000 Cr spacetech fund starting in FY26, is going to help startups grow with resources, mentorship, and new opportunities.
Notably, ISRO’s Gaganyaan mission, India’s first human spaceflight, remains highly anticipated, with its launch expected in 2026.
In preparation, an uncrewed test flight featuring a humanoid robot is planned for early 2025.
Commercial satellite launches will also dominate the year, led by startups like Pixxel and GalaxEye, highlighting India’s capability to deliver cutting-edge solutions to the global $1.8 Tn space economy projected by 2035.
As the journey toward a $44 Bn space economy accelerates, 2025 is shaping up to be a pivotal year in establishing India as a global leader in spacetech.
[Edited By Shishir Parasher]
