Spacetech startups say the next two years critical for commercialisation, acknowledge govt push

India’s spacetech startups are gearing up for a sharp commercial push over the next two years.

Founders say rising demand for space-based data could help the sector build its first unicorns and eventually open the door to public listings. Their vote of confidence comes soon after Prime Minister Narendra Modi on Thursday inaugurated Hyderabad-based Skyroot Aerospace’s new campus.

Government support has been critical in helping early-stage companies move from R&D to revenue, founders told ET. Agencies such as IN-SPACe and schemes including the Rs 1,000 crore venture capital fund and the Rs 211 crore allocation under the Fund of Funds for Startups (FFS), will enable startups to further build capabilities that were earlier out of reach, they said.


Indian startups are now developing end-to-end launch systems for the global small-satellite market, easing the load on national programmes and the Indian Space Research Organisation, and expanding the overall capacity, according to the Indian Space Association (ISpA).

PM Modi, while inaugurating the facility, said India’s space sector is attracting global investors as demand for small satellites continues to rise worldwide. “Space has now established itself as a strategic asset. Therefore, the global space economy is going to multiply in the coming years. This is a huge opportunity for the youth of Bharat,” Modi said.

Agnikul Cosmos cofounder Srikanth Ravichandran said the next one to two years will see more companies shift firmly into commercialisation. “Government support through space policies has given investors confidence to back these companies,” he said.

In May, Agnikul completed a sub-orbital test flight of its 3D-printed semi-cryogenic rocket Agnibaan from Sriharikota. Last week, the startup raised $17 million at a $500 million valuation to expand its manufacturing capacity and prepare for upcoming launches.

Spacetech to follow consumer-tech path

Founders believe the sector could follow consumer-tech companies into the public markets.

“The unicorn status will be a first milestone, but listing will become important for startups. In five to seven years, deeptech startups could get IPOs in the Indian market like how companies like Swiggy are listing today,” said Tushar Jadhav, cofounder of Manastu Space. The Mumbai-based startup, which builds green satellite propulsion systems, plans to commercialise its technology in the next six months.

For investors willing to take long-term risks, the sector now offers “multiple asymmetric return paths”, said Vishesh Rajaram, cofounder of Speciale Invest, which has backed seven spacetech startups. "Especially for deeptech investors, this is a once-in-a-generation opportunity," he said.

Market projections show that the Indian spacetech segment is expected to grow at a CAGR of 11.2% from 2024 to 2030, according to Grand View Research.

Skyroot’s newly opened Infinity facility in Telangana spans over 200,000 sq ft and has the capacity to design, integrate and test multiple launch vehicles, including producing one orbital rocket every month. “The unveiling of Skyroot’s Vikram-I orbital rocket and the Infinity campus is a powerful reaffirmation of India’s NewSpace vision,” said ISpA director-general Lt Gen (Retd) AK Bhatt. The facility underlines India’s shift from being primarily a launch destination to a competitive manufacturing and services hub in the global space value chain, he said.