India’s space technology sector experienced a record-breaking funding of $126 million in 2023, marking a 7% increase from the $118 million raised in 2022 and a massive 235% increase from $37.6 million in 2021, according to a report by market intelligence firm Tracxn. As of 2024, the year-to-date funding for the sector stands at $10.8 million.
The spacetech sector has been on an upward trend, driven by substantial government support and significant innovations, despite a global slowdown in funding. The sector currently hosts more than 100 startups, the majority of which have been founded in the last five years. The Union Budget’s allocation of Rs 1,000 crore is expected to significantly boost the industry, attracting more entrepreneurship and investment in the coming months.
Currently, India boasts 55 active space assets, including communication, meteorological, and earth observation satellites. Neha Singh, Co-founder of Tracxn, stated that the significant funding and strategic investments in the sector are setting the stage for India to become a major player in the global space industry.
In 2023, early-stage rounds attracted $120 million of the total $126 million raised, reflecting a notable growth from $114 million in 2022. Seed-stage funding has also seen a significant rise, growing from $4.3 million in 2022 to $5.3 million in 2023. However, the nascent ecosystem for private sector participation in Indian Space Tech startups has not yet experienced any late-stage funding.
Skyroot Aerospace leads as the highest-funded active space tech startup in India, with overall funding of $99.8 million, followed by Pixxel at $71.7 million and Agnikul at $61.5 million. No other startup in this segment has raised funds above $50 million. Despite the vibrant funding landscape, no acquisitions have been observed in 2024. The only acquisition to date is the 2022 purchase of Prakshep, a satellite imagery provider for the agricultural industry, by Arya.
Bengaluru leads the list of top-funded cities in India’s spacetech sector, followed by Hyderabad and Chennai.
