NEW DELHI: India's space technology sector is on brink of substantial growth. It is bolstered by significant government investment and strategic initiatives. Recent Union Budget has earmarked Rs 1000 crore to support space technology startups. This move aims at accelerating sector's development and drawing more investment.
According to Tracxn's Space Tech Geo Report 2024, India's burgeoning space tech sector saw record-breaking funding of $126 million in 2023. This marks a 7% increase from $118 million raised in 2022. It also reflects an impressive 235% rise from $37.6 million in 2021. Funding landscape continues to show promise. Year-to-date funding for 2024 stands at $10.8 million. Despite global slowdown in funding Indian space tech sector has maintained upward trajectory. It is spurred by substantial government backing and notable innovations
India has solidified its position as formidable player in global space technology arena. It boasts over 100 space tech startups. Most of those were established in past five years. Government support has been critical driver of this growth. The Union Budget's allocation of INR 1000 crore is anticipated to significantly boost industry. It is expected to attract more entrepreneurs and investors in coming months.
Currently, India has 55 active space assets. These include communication meteorological and earth observation satellites. The funding landscape in India's space tech sector is predominantly driven by early-stage investments. In 2023, early-stage rounds garnered $120 million of total $126 million raised. This shows notable growth from $114 million in 2022. Early-stage funding in 2024 has reached $8.5 million to date. Seed-stage funding has also seen substantial rise. It increased from $4.3 million in 2022 to $5.3 million in 2023. This marks a 24% increase.
Leading pack of funded startups is Skyroot Aerospace with overall funding of $99.8 million. Following is Pixxel at $71.7 million and Agnikul at $61.5 million. Top-funded business models in this space include Small Satellite Launch Vehicles Satellite Imaging Services and Satellite Communication Services.
Neha Singh Co-Founder of Tracxn commented India’s space tech sector is growing rapidly. This growth is thanks to strong government support and dynamic startup scene. Significant funding and strategic investments we’re seeing now are setting the stage for India to become major player in global space industry. Looking ahead we expect sector to attract even more investment.
Privatization of space sector has catalyzed multifold increase in activity. Bangalore is leading list of top-funded cities following Hyderabad and Chennai.
ALSO READ:
ALSO WATCH: