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.
This story is from the September 2024 edition of Outlook Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 2024 edition of Outlook Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Adani After Hindenburg 2.0
In the days following Hindenburg's second shot at Gautam Adani, this time with Sebi chief Madhabi Puri Buch in the mix, Adani stocks held steady. But the trust of institutional investors remains to be regained
Where Are The Jobs?
India is staring at a crisis: the cohort of unemployed is growing. But the problem is deeper than mere lack of jobs. So Sitharaman's solutions in Budget 2024 will not be the silver bullet for the crisis
'STAINLESS STEEL SECTOR PROJECTED TO GROW AT 8-9%"
Stainless steel, known for its resistance to corrosion, recyclability and strength, has found its applications across sectors-from kitchen utensils to towering skyscrapers. Abhyuday Jindal, MD, Jindal Stainless discusses five drivers of growth in the stainless-steel sector of India
Harnessing Technology for India's Sporting Future: Insights from IITM
We wanted to bring the rigour of IIT Madras to revolutionise the field of sports as well. We wanted to use the core strengths of IIT Madras - high quality research and development as well as teaching.
Dream11: Driving Fan Engagement and Innovation
Dream11, founded by sports enthusiasts Harsh Jain and Bhavit Sheth, has grown into the world's largest fantasy sports platform by focusing on personalisation, innovation, and a deep understanding of user needs. In an exclusive interview with Outlook Business, Rahul Mirchandani, Chief Product Officer at Dream11 & Dream Sports, speaks about the company's unique approach to product development and user engagement. With over 220 million users, Dream11 emphasises personalisation, user engagement, and cutting-edge technology.
Sports Science Holds The Key to Olympic Wins
Director-in-charge and Head of National Centre for Sports Science and Research (NCSSR) Dr. Bibhu Kalyan Nayak speaks to Outlook on the importance of sports science in modern-day sports training.
Baller Athletik: Pioneering the Future of Sportswear Technology
How Baller Athletik is enhancing athletic performance and recovery with simple, yet powerful wearable tech.
Integrating Technology and Hands-on Training: The Future of Sports Education in India
The first-ever Sports Tech Conclave in India highlighted the importance of combining e-learning with practical experience to shape the future of sports education.
PASSING ON THE LEGACY
It is hard to achieve worklife balance if you are running a family business. For George Alexander Muthoot, managing director of Muthoot Finance, board meetings are the way to spend time with family
Pioneering a Sports Revolution: A Deep Dive into SFA's Vision and Impact on Indian Youth
In an exclusive conversation, the founders of Sports For All (SFA) share their journey of transforming grassroots sports in India. Rishikesh Joshi, a national-level swimmer, and his co-founder Vishwas Choksi, driven by their shared passion for sports, launched SFA with the vision of making sports accessible and enjoyable for every child in the country. From leveraging cutting-edge technology to ensuring inclusivity, SFA is not just nurturing future champions but also revolutionizing the sports landscape in India. This discussion delves into their inspiration, the rapid growth of SFA, and their ambitious goals for the future, shedding light on how they are shaping the next generation of Indian athletes.