The landmark fund, managed by SIDBI Venture Capital, will boost early-stage and growth-stage startups across India’s fast-evolving space ecosystem — from launch technologies to downstream applications.
NFAPost, Bengaluru: In a major step toward strengthening India’s private space ecosystem, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Small Industries Development Bank of India Venture Capital Ltd (SIDBI Venture Capital Fund) have formally signed the Contribution Agreement to operationalise the ₹1,000 crore Space Venture Capital Fund.
The signing, which took place today, marks the official start of the Fund’s investment activities, following Securities and Exchange Board of India (SEBI) approval on October 31, 2025.
The agreement was signed between Shri Lochan Sehra, IAS, Joint Secretary, IN-SPACe, and Shri Arup Kumar, Managing Director and CEO, SIDBI Venture Capital Limited (SVCL) — a 100% subsidiary of SIDBI. Senior officials including Shri Ratnesh Kumar, Deputy Director (F&A), IN-SPACe, and Shri Rajesh Kohli, Assistant Director (F&A), IN-SPACe, were also present, representing the financial and operational leadership that structured the fund.
Dr. Pawan Goenka, Chairman, IN-SPACe, addressed the ceremony virtually, highlighting the fund’s pivotal role in “accelerating India’s journey toward becoming a global leader in space technology and entrepreneurship.”
A Strategic Push for India’s Space Startups
The ₹1,000 crore venture fund was approved by the Union Cabinet in October 2024, chaired by Hon’ble Prime Minister Shri Narendra Modi, as part of the government’s larger effort to strengthen private participation in the space sector.
In March 2025, SIDBI Venture Capital was appointed as the Fund Manager, leveraging its extensive experience in nurturing technology-led and deep-tech enterprises across India.
The fund aims to bridge the critical capital gap faced by early-stage and growth-stage space startups, supporting ventures in key areas such as:
- Launch technologies
- Satellite manufacturing and payload systems
- In-space services and robotics
- Earth observation and communication platforms
- Downstream applications and analytics
By infusing strategic funding and mentorship, the initiative seeks to help Indian companies “test ideas, scale confidently, and build globally competitive technologies.”
“A Major Enabler for India’s Private Space Sector”
Speaking at the signing ceremony, Shri Lochan Sehra, IAS, Joint Secretary, IN-SPACe, emphasised the transformative nature of the initiative.
“This fund is a major enabler for India’s private space sector,” he said. “It will support startups with the financial runway needed to test ideas, build indigenous technologies, and scale confidently. Today’s signing strengthens our commitment to building a vibrant ecosystem where innovation flourishes and Indian enterprises become global leaders in space technology.”
Shri Arup Kumar, Managing Director and CEO, SVCL, echoed similar optimism, stressing SIDBI’s commitment to supporting frontier innovation.
“SIDBI is committed to empowering India’s deep-tech and frontier technology entrepreneurs, and the space sector represents one of the most promising frontiers of national growth,” he said. “This dedicated fund will give young companies the capital and confidence to innovate boldly, commercialise breakthroughs, and contribute to India’s emergence as a major space power. We are honoured to partner with IN-SPACe and the Government of India in advancing this mission.”
A Catalyst for India’s Global Space Ambition
The operationalisation of the fund marks a significant milestone in India’s ongoing space reform journey, which began with the opening of the space sector to private players in 2020.
Through initiatives such as SpaceTech innovation hubs, private launch authorisations, and collaborative missions, IN-SPACe has played a pivotal role in enabling startups and enterprises to participate meaningfully in the national space programme.
With the new venture capital fund now active, India’s private space companies will have the financial foundation and institutional backing needed to accelerate R&D, scale manufacturing, and attract global partnerships.
As Dr. Goenka remarked during his address, “This fund is not just a financial instrument — it is a catalyst for innovation, collaboration, and national pride. It will ensure that India’s space startups don’t just dream big, but have the means to achieve those dreams.”
Building a Future-Ready Space Industry
As the global space economy is poised to surpass $1 trillion by 2040, India’s growing private space ecosystem stands at the threshold of immense opportunity. The IN-SPACe–SIDBI partnership ensures that Indian startups are not left behind in this race — by giving them access to capital, mentorship, and a policy framework designed for growth.
With today’s signing, India has sent a clear signal: its space future will be powered not just by rockets and satellites — but by entrepreneurs, investors, and innovators working together to build the next frontier.
