- Milestone deal marks launch of India’s first dedicated Space Sector VC Fund
- Fund to provide early-stage capital for launch, satellite, and in-space technologies
- IN-SPACe, SIDBI join forces to power India’s emergence as a global space innovation hub
NE ECONOMIC BUREAU
AHMEDABAD, NOV 10
In a landmark move to accelerate private participation and innovation in India’s space ecosystem, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Small Industries Development Bank of India (SIDBI) on Monday signed a Contribution Agreement to operationalise the ₹1,000 crore Venture Capital Fund for the Indian space sector.
This agreement marks the formal commencement of the Fund’s investment activities, following its approval by the Securities and Exchange Board of India (SEBI) on October 31, 2025. The signing ceremony took place between Lochan Sehra, IAS, Joint Secretary, IN-SPACe, and Arup Kumar, Managing Director and CEO, SIDBI Venture Capital Limited (SVCL) — a wholly owned subsidiary of SIDBI.
Senior officials, including Ratnesh Kumar, Deputy Director (F&A), and Rajesh Kohli, Assistant Director (F&A), IN-SPACe, attended the event, while Dr. Pawan Goenka, Chairman, IN-SPACe, addressed the gathering virtually and lauded the initiative as a critical catalyst for India’s growing private space sector.
Approved by the Union Cabinet chaired by Prime Minister Narendra Modi in October 2024, the Fund is aimed at providing early-stage and growth capital to startups engaged in launch technologies, satellite and payload systems, in-space services, earth observation, communication platforms, and downstream space applications.
Lochan Sehra, IAS, Joint Secretary, IN-SPACe, said: “This Fund is a major enabler for India’s private space sector. 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.”
Echoing this sentiment, Arup Kumar, Managing Director and CEO, SVCL, added: “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. 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.”
By leveraging SIDBI’s expertise in venture investing and IN-SPACe’s strategic oversight, the initiative is poised to catalyse the next wave of space-tech entrepreneurship, fostering self-reliance, technological excellence, and global competitiveness in India’s space industry.
With the operationalisation of this fund, India takes a decisive leap toward becoming a space innovation powerhouse, nurturing startups that will power the country’s ambitions from launchpads to lunar frontiers.
