India signs ₹1,000 crore VC fund to boost private space-tech startups

In a significant push for policy, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) in collaboration with the Small Industries Development Bank of India Venture Capital Ltd (SVCL) has officially signed a deal that involves a ₹1,000 crore ($120 million approx.) venture-capital fund that will be exclusively for private space-technology startups. The fund received approval from the Union Cabinet and it will be operational from November 10 in Ahmedabad. The fund will consider investing in early-stage and growth-stage companies involved in launch-vehicle technology, satellites, payloads, in-space services, earth observation, and downstream applications. The main aim is to speed up the growth of India’s private space sector, lessen import dependence and make Indian space products more competitive in the overseas market. Analysts are of the opinion that the cowries pouring in will be able to bring at least a dozen start-ups in the next five years and unlock a pool of highly qualified human resources while interlinking research and commercialization throughout the space value chain. This is a clear indication from India that it is gradually opening up the sector to more private participation which was earlier dominated by the government. The fund’s success will hinge on wise allocation, spotting of high-potential ventures, technology maturation and global market access.