In 2020, the Indian space ecosystem opened its doors to private participation under the IN-SPACe program, the country’s single window nodal agency for authorizing, promoting, and regulating private players. The reform hailed as revolutionary, is opening avenues for private players not just in space exploration but also in satellite building, sub-assemblies, geospatial imagery, surveillance, communication technology, and analytics amongst others

The Global space economy was pegged at ~US$ 470B in 2021 and is expected to grow at a CAGR of ~4-5% during 2021-40, with India’s share being roughly 2-3% currently, presenting a massive opportunity for ambitious space entrepreneurs to ‘propel’ themselves into
Let’s explore the emerging SpaceTech segments, and how start-ups are using technology and business innovations to build the Indian space ecosystem
Space technology which is the application of science and engineering principles to conduct any operation beyond Earth’s atmosphere has always existed, but the commercialization of this technology has recently begun with the support of new space policies initiated by the government.
SpaceTech can be classified into four major sub-segments as stated below:

Back in 2019, only 11 startups were working in the Indian space sectors primarily as suppliers, but post reforms and privatization, India has seen over 100 startups emerge with more than 75 startups registered with ISRO and DoS:

More than ten startups are currently prepared to launch their launch vehicles, satellites, or products by the end of this year or early the following year. Dhruva and Pixxel are prepared to launch their satellites, and Agnikul and Skyroot are testing their rockets to launch small payloads. While Digantara would map the space debris for the entire world, Bellatrix, another firm, is well along in the development of an electric thruster. Bangalore-based Astrome is developing cutting-edge devices for both terrestrial and satellite communication networks using millimeter-wave wireless communication technology.

Many SpaceTech founders have commented that more than regulations, funding seems to be of greater importance to them. They remain bullish on receiving investments as the number of startups in this sector grows. Recently, Skyroot Aerospace Pvt. Ltd became the highest-funded SpaceTech startup receiving an investment of US $51M led by the Singapore-headquartered long-term investment firm, GIC.
Startups in the SpaceTech sector have collected ~US $150M in funding in the last three years. Year to date, US $89M has been collectively raised in this space with a 68% growth funding from the previous year!

Dr. Pawan Goenka, the chairperson of IN-SPACe, said that SpaceTech is being viewed as a white space by investors and emphasized the need for demonstrations on the technical side as well as business aspects to further gain investors’ attention. Positive resolve of the Government, coupled with the mentorship of ISRO & IN-SPACe and support from investors has opened an immense growth opportunity for the Indian space economy!