India’s space sector poised for growth despite funding challenges

Pawan Goenka, chairman of the Indian Space Promotion and Authorization Center (IN-SPACe) highlighted that India has already seen a space startup reach a valuation of $500 million. He was also optimistic about the emergence of a billion-dollar unicorn in the near future. 

Also Read: Bengaluru start-up deploys world’s first commercial space surveillance satellite

“We currently have one startup valued at $500 million, and there are three to four more with valuations around $250 million,“ Goenka shared during his speech at the Bharat Space Conclave on March12. “I am eagerly anticipating the arrival of the first unicorn, and I hope it happens very soon.”

In his keynote address, Goenka emphasized the rapid growth of India’s space startups but acknowledged the ongoing challenge of securing funding. He noted that while funding in the space tech sector was around $130 million last year, it has declined this year. Goenka mentioned that efforts are underway to engage multiple investor groups, raise awareness , and highlight the sector’s potential for profit. 

Goenka highlighted that investors’ primary concern is whether their investments will yield returns, and emphasized the need to demonstrate the past successes to reassure them. He also mentioned that the Rs 1000 crore VC fund announced in the Union Budget will serve as a multiplier for the sector. 

Additionally, Goenka mentioned that the government has approved the production of over 60 LVM3 rockets, which will involve private sector participation, adding another Rs 25,000 crore in business. 

"Big numbers are coming on the table," Goenka concluded, emphasizing the expanding demand.