Ahmedabad, November 11 — In a major boost to India’s private space ecosystem, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and Small Industries Development Bank of India (SIDBI) Venture Capital Ltd (SVCL) have inked a landmark ₹1,000 crore venture capital fund agreement aimed at nurturing innovation and entrepreneurship in the country’s growing space technology sector.
The agreement, signed in Ahmedabad, officially operationalises the fund following approval from the Securities and Exchange Board of India (SEBI) on October 31. The initiative is designed to strengthen India’s deep-tech and space innovation capabilities by providing financial support to early and growth-stage startups working on satellite systems, launch vehicles, space communication, and downstream applications such as earth observation and data analytics.
Empowering India’s Space Entrepreneurs
Commenting on the announcement, Arup Kumar, Managing Director and CEO of SVCL, said,
“SVCL is committed to empowering India’s deep-tech and frontier technology entrepreneurs, and the space sector represents one of the most promising frontiers of national growth. This dedicated fund will give young companies the capital and confidence to innovate boldly.”
The ₹1,000 crore fund is expected to play a key role in bridging the capital gap for private players in India’s fast-evolving space sector, helping them scale operations, invest in R&D, and develop indigenous technologies to meet global standards.
IN-SPACe’s Vision for Private Space Growth
Highlighting the collaboration’s strategic importance, Lochan Sehra, Joint Secretary at IN-SPACe, stated,
“This fund is a major enabler for India’s private space sector. It will support startups with the financial runway needed to test ideas, build indigenous technologies, and scale confidently.”
He added that this partnership reflects IN-SPACe’s continued commitment to building a vibrant, self-reliant, and competitive space industry, ensuring India remains at the forefront of global space innovation.
A Step Towards a Self-Reliant Space Ecosystem
The fund was initially approved by the Union Cabinet in October 2024 as part of India’s broader efforts to enhance private participation in the space industry. In March 2025, SVCL was appointed as the fund manager, given its experience in managing early-stage investments in deep-tech and frontier sectors.
Under the agreement, the fund will invest in startups developing:
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Launch technologies and propulsion systems
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Satellite and in-space service infrastructure
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Space-based communication and remote sensing platforms
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Earth observation and data processing solutions
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Commercial downstream applications
The initiative aligns with India’s broader space reforms, which opened the sector to private enterprises in 2020. Since then, startups like Skyroot Aerospace, Agnikul Cosmos, Dhruva Space, and Pixxel have emerged as key innovators, driving India’s position in the global space economy.
By operationalising this fund, IN-SPACe aims to further democratise space innovation, enabling smaller players to access the funding and technical support required to compete internationally.
Catalysing Private Space Investments
According to SVCL, the ₹1,000 crore fund is structured to attract additional co-investments from private and institutional investors, amplifying the overall financial pool available to India’s new-space ventures. The focus will remain on supporting companies in launch services, satellite manufacturing, in-space propulsion, and data-driven applications, all of which are poised to contribute significantly to India’s $13 billion space economy target by 2030.
Experts believe that this move will accelerate India’s shift from a government-driven to a public-private collaborative space ecosystem, enabling startups to focus on cutting-edge technologies such as reusable launch vehicles, AI-driven satellite data, and micro-constellation networks.
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