Indian private space sector regulator, the Indian National Space Promotion and Authorisation Centre (IN-SPACe), on Friday appointed Sidbi Venture Capital Limited (SVCL) to manage the much-awaited Rs 1,000 crore venture capital (VC) fund aimed at boosting space tech startups in the country. SVCL, a wholly owned subsidiary of the Small Industries Development Bank of India (SIDBI), will oversee the fund, which is expected to provide crucial capital support to private players in the space sector.
The fund will distribute its capital over five years, beginning with Rs 150 crore in 2025-26, followed by Rs 250 crore annually for the next three years, and concluding with Rs 100 crore in 2029-30. The government aims to support 40 startups across the space supply chain—upstream, midstream, and downstream.
IN-SPACe said that companies at different growth stages can avail of the funding, with Rs 10 crore to Rs 30 crore for growth-stage startups and Rs 30 crore to Rs 60 crore for late-stage startups. The government believes capital infusion will create a multiplier effect by attracting additional investments for later-stage development and instilling confidence in private investors.
The fund is expected to generate employment by enabling startups to scale, invest in research and development (R&D) and expand their workforce.
Industry experts have welcomed the initiative, highlighting that increased funding will not only provide a much-needed boost to early and late-stage space startups but also help retain companies within India and counter the trend of Indian space firms domiciling abroad.
“The fund will create jobs and contribute to economic growth by expanding India’s space economy fivefold over the next decade, targeting a $44 billion market by 2033,” IN-SPACe said.
