RT team
India’s space industry has warmly received the introduction of a Rs 1,000 crore Venture Capital Fund aimed at propelling about 40 startups. This initiative is expected to draw private sector investments and create numerous job opportunities.
The fund will operate over a five-year period, with investments ranging from Rs 10-60 crore depending on the developmental stage of the company, its growth potential, and its projected impact on national space capabilities.
Investments will vary, with companies in the growth phase receiving between Rs 10-30 crore and those in the later stages receiving Rs 30-60 crore. It is anticipated that the fund will allocate an average of Rs 150-250 crore annually, influenced by the quality of investment opportunities and the needs of the fund.
Pawan Kumar Chandana, CEO of Skyroot Aerospace, praised the government’s initiative, emphasizing its potential to bolster the space ecosystem significantly. The fund is expected to generate a cascade of private investments and ensure the industry’s long-term prosperity.
Skyroot Aerospace, a leading entity in the sector, made history in November 2022 by launching the Vikram-1, marking its status as the first private company to achieve such a feat.
With India’s space economy currently valued at approximately $8.4 billion, the government aims to escalate this to $44 billion by 2033. Since reforms in 2020, around 250 startups have registered, reflecting a surge in private involvement.
The fund is designed to enhance job creation throughout the space sector’s supply chain, including upstream, midstream, and downstream areas. It will enable companies to expand, innovate, and augment their workforce, thereby fostering a robust startup ecosystem that not only generates employment but also cultivates a skilled workforce, thereby enhancing India’s standing in the global space market.
Regulated by the Securities and Exchange Board of India, this alternative investment fund will provide early-stage equity, setting the stage for further private equity investments.
A K Bhatt, director general of the Indian Space Association, believes the fund will catalyze the growth of India’s space startups and attract more investors, marking a significant step in the country’s space sector advancements.
