Cabinet Approves INR 1,000 Cr VC Fund For Space Sector
by Anne Florentyna · Inc42SUMMARY
- The venture capital fund would be set up under the Indian National Space Promotion and Authorization Centre (IN-SPACe)
- The average investment would be in the range of INR 10 Cr to INR 60 Cr, depending on factors like stage of the company, growth trajectory, among others
- The fund was announced by finance minister Nirmala Sitharaman during her budget speech in July this year
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The union cabinet has approved setting up a venture capital fund with a corpus of INR 1,000 Cr under the Indian National Space Promotion and Authorization Centre (IN-SPACe).
The fund was announced by finance minister Nirmala Sitharaman during her budget speech in July this year.
In a statement, the government said that the funds will be deployed over a period of five years. “The average deployment amount could be INR 150-250 Cr per year, depending on the investment opportunities and fund requirements,” it said.
The Centre has assigned FY26 to FY30 as the years for the funds deployment.
The average investment would be in the range of INR 10 Cr to INR 60 Cr, depending on factors like stage of the company, growth trajectory, and potential impact on the national space arena.
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Growth stage companies would get equity investment of about INR 10 Cr to INR 30 Cr from the fund, while late growth stage companies will get investments between INR 30 Cr to INR 60 Cr.
The fund is designed to give a boost to the space sector and foster innovation through the following initiatives:
- Capital infusion
- Retaining companies in India
- Growing space economy
- Accelerating space technology development
- Boosting global competitiveness
- Supporting ‘Atmanirbhar Bharat’
- Creating a vibrant innovation ecosystem
- Driving economic growth and job creation
- Ensuring long-term sustainability
The fund is part of the Centre’s initiatives to give a further boost to the spacetech sector. From opening up the space sector to private players to liberalising the FDI regime, the Centre has taken a number of steps over the last few years to boost the country’s space economy.
As a result, a number of spacetech startups have emerged in the country over the last few years. As per Inc42 data, over 150 spacetech startups bagged more than $285 Mn in funding between 2014 and 2023.
Commenting on the cabinet approval for the fund, Pixxel founder and CEO Awais Ahmed said that it would become a launchpad for the next wave of space companies tackling everything from climate monitoring to satellite communications.
“This ₹1,000 Cr venture fund is exactly what India’s spacetech ecosystem needs right now. India has the talent and the ambition to be a leader in space, and this move helps bridge the gap between bold ideas and execution,” Ahmed said in a post on X.
Earlier, Special Invest managing partner Vishesh Rajaram told Inc42 that the fund will have a multiplier effect on the Indian spacetech sector.