From the ramparts of the Red Fort this August 15, Prime Minister Narendra Modi proclaimed, "Our space sector was in shackles...we have liberated it from past restrictions." The remark drew widespread agreement. The Modi administration has done much to give wings to India's space ambitions. The Indian Space Research Organisation (Isro) has notched multiple successes, and space-tech start-ups have mushroomed across the country.
The 2025 fiscal Union Budget has announced a Rs 1,000-crore venture capital fund for space-tech start-ups. Yet beneath the gleam of these successes, a humbling reality looms: the near absence of patient capital.
Indian space-tech start-ups have seen a surge of capital the past three years. Funding soared from $37.6mn in the 2021 fiscal to more than triple that in 2022, and to a 235% leap to $126mn in 2023, according to data from capital markets firm Tracxn. But a closer look reveals a troubling trend: of the $126mn, nearly 95% went to early-stage start-ups while a paltry sum trickled to late-stage companies. Early-stage investments dominate the funding landscape, with seed-stage start-ups receiving only a modest boost from $4.3mn in 2022 to $5.3mn in 2023. But late-stage start-ups-those most poised to deliver tangible results-are struggling for funds.
Failed Take-offs
India's space-tech ecosystem is fertile ground for new ventures, yet not all are thriving. Dhruva Space, founded in 2012, is one of the country's oldest space-tech start-ups, but it closed its Series A funding round 12 years later in April this year. Of the 200-odd space-tech start-ups in India today, only two-Ananth Technologies and MTAR Technologies have been listed on the stock exchange, and the sector has yet to produce a single unicorn.
Esta historia es de la edición September 2024 de Outlook Business.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición September 2024 de Outlook Business.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'
Increasing brand consciousness and awareness among consumers is helping expand the organised jewellery retail industry. MP Ahammed, chairman of Malabar Group, discusses prominent trends in the jewellery industry
BATTLE TO WIN THE AI RACE
In Supremacy, Parmy Olson tells the astonishing and behind-the-scenes story of the battle between the world’s two leading artificial intelligence firms, OpenAl and DeepMind and the continuing rivalry of its founders Sam Altman and Demis Hassabis respectively
A LEADER WHO EMPOWERS
Anshul Arzare, MD and CEO of YES SECURITIES, wants to ensure a workplace where employees not only contribute to the company's vision but also feel content
EV Unplugged
Electric vehicles are crucial to India’s climate change plan. But reliance on China for imports and technology constraints remain hurdles the sector needs to overcome
Every Lamborghini Owner is a Brand Ambassador
Regional director of Automobili Lamborghini, Francesco Scardaoni, talks to Prachi Khanna about the brand’s approach to fostering a sense of community among its vehicle owners. Edited excerpts
NO ZEST FOR ZED
A government initiative to green MSMEs is not finding enough takers
SMALL PLANTS, BIG TROUBLE
Climate-triggered stress is placing an unprecedented burden on small businesses. But a lack of access to climate aid hinders the sector's ability to adopt greener methods
'We Think About the Rider More Than Any Other Company
Rapido co-founder Aravind Sanka talks to Neeraj Thakur and Deepsekhar Choudhury about how flexibility and fair pay helped his company disrupt the Ola-Uber duopoly. Edited excerpts
LABOUR PANGS
Rising cost of living in a fast-growing economy is making workers restless
'Hustle is No Virtue'
It has become fashionable to talk about the verb “hustle” these days, especially in professional settings.
