The Indian space industry has reacted with enthusiasm to the Union Cabinet's approval of a Rs 1,000 crore venture capital fund for the space sector.
This move, announced in line with the Union Budget, is seen as a significant boost to the growing space startup ecosystem in India.
The space sector, in particular, is poised for exponential growth, and this new fund reflects the government's commitment to creating more opportunities for youth and entrepreneurs in this high-tech field.
The initiative aims to support 30-40 startups initially, focusing on taking innovative concepts from ideation to commercialisation.
Lt. Gen. AK Bhatt (retd.), Director General of the Indian Space Association (ISpA), expressed satisfaction with the decision, stating, "We are happy to note that Cabinet has approved the ₹1000 crore VC fund for space industry."
He emphasised that financial support is one of the foremost requirements of the industry at this juncture. Bhatt believes that this fund will not only be a key enabler for the growth of the Indian space startup ecosystem but will also inspire investors to seriously consider the sector for investment opportunities.
Chaitanya Dora Surapureddy, CFO & Co-founder of Dhruva Space, shared his excitement about the government's commitment to enhancing equity support. He highlighted that this allocation under IN-SPACe is poised to drive innovation and strengthen the entrepreneurial ecosystem across the space industry.
Surapureddy expressed hope that this capital infusion will accelerate the ecosystem's growth trajectory and enhance their ability to attract additional investments.
The venture fund is expected to have a multiplier effect on the space sector, enabling companies like Dhruva Space to compete on the global stage. Surapureddy mentioned that this support would allow them to establish a 280,000 sq-ft spacecraft manufacturing facility and fulfill orders for space missions from global customers.
Industry leaders believe that this initiative will empower both early-stage and later-stage startups to innovate boldly and pioneer next-generation products.
"Building rockets, satellites, or even space-data analytics startups requires substantial R&D, capacity building, and talent development. For early-stage and growth startups, this presents a vexing challenge: investors often require proof of concept before committing, yet achieving proof of concept requires significant capital," Pawan Kumar Chandana, co-founder, CEO Skyroot Aerospace said. He added that the dedicated venture fund can solve this chicken-and-egg problem. "It's a stabilizing force that empowers early and growth-stage space-tech startups to scale up."
The fund is seen as a catalyst for the space sector to focus on breakthrough technologies and market expansion, potentially positioning Indian companies ahead of the curve in the global market.
Source: India Today