SIDBI VC to Manage ₹1000 cr Space Fund, India to be $44 Bn Space Economy by 2033 The fund is set up to disburse it capital over five years, kicking off with an INR 150 crore in 2025-26, followed by an annual INR 250 crore release for the next three years and closing the fund with the remaining INR 100 crore in 2030, with the government aiming to support at least 40 startups across.
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The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has appointed Sidbi Venture Capital Limited (SVCL) to manage the INR 1,000 crore fund aimed at aiding the space tech industry in the country.
SVCL, incorporated in 1999, operates as an investment management company and is a wholly owned subsidiary of Small Industries Development Bank of India (SIDBI), the apex financial institution in the country serving the MSME sector. SVCL has previously managed funds focused across sectors such as startups/early-stage technology businesses, manufacturing SMEs, service entities, agri businesses, and financial inclusion companies, among others.
The fund is set up to disburse it capital over five years, kicking off with an INR 150 crore in 2025-26, followed by an annual INR 250 crore release for the next three years and closing the fund with the remaining INR 100 crore in 2030, with the government aiming to support at least 40 startups across.
According to IN-SPACe, companies at different stages can avail funding with INR 10-30 crore for the growth stage and INR 30-60 crore for late-stage operations. The fund is expected to generate employment and improve research and development (R&D) in the sector.
Industry stakeholders feel that the funding influx will give a necessary boost to the tech-heavy sector and propel the country further in the modern space race.
Yashas Karanam, Cofounder and COO of Bellatrix Aerospace, said that it is encouraging to see IN-SPACe advance in its efforts with a clear strategy.
"The space budget has tripled in the last ten years, private funding hit $130 million in 2023. This isn't just funding; it's a boost to help us innovate, lead the world, and put India on the global map," said Karanam,
Karanam also predicted that the country is en-route to being a USD 44 billion space economy by 2033 and said that he sees rapid changes in India's space sector,
"That's not just hope; it's something we can reach, thanks to the Government and IN-SPACe stepping up," said Karanam.
"The fund will create jobs and contribute to economic growth by expanding India's space economy fivefold over the next decade, targeting a USD 44 billion market by 2033," IN-SPACe said.
Earlier this year, IN-SPACe also unveiled the Technology Adoption Fund (TAF) to accelerate the development of India's space technology ecosystem.
The initiative is being aimed at transitioning early-stage innovations from concept to commercial viability and empowering Non-Government Entities (NGEs), including startups and MSMEs.
According to IN-SPACe, TAF helps promote the development of space-related technology within India, eventually reducing the country's dependence on imports.
Dr Pawan Goenka, Chairman, IN-SPACe, said that the fund has been designed to help innovators bridge the gap between early-stage development and commercialisation.
"This support will enable companies to refine their technologies, enhance production processes, and meet market demands both within India and abroad. Our focus is on enabling practical solutions that can be quickly integrated into the space ecosystem", Dr Goenka added.
