IN-SPACe to Make First Investment Under Rs 1,000-Crore Venture Fund This Fiscal Year
The Indian National Space Promotion and Authorization Center (IN-SPACe) is on the verge of a significant milestone as it prepares to make its first investment under the Rs 1,000-crore venture fund within the current fiscal year. This strategic move comes as the space authorization and regulatory body endeavors to bolster the burgeoning space startup ecosystem. With plans to begin scouting potential deals, IN-SPACe is in the process of hiring a fund manager tasked with evaluating startup applications in the pre-series funding stage.
As an independent nodal agency under the Department of Space, IN-SPACe is dedicated to promoting and overseeing private sector involvement in space activities. Chairman Pawan Kumar Goenka revealed that the organization is also addressing authorization applications from notable global players, such as Elon Musk’s Starlink and Amazon’s Kuiper. These applications are currently under scrutiny, with IN-SPACe having sought further information and clarification.
“We are open to all kinds of startups in the segment which we believe have the potential to succeed and develop a robust business plan. The investment through the fund focuses on creating successful startups,” stated Goenka in an exclusive interview. He elaborated on the venture capital fund’s operations, noting that it is designed to function like any other VC fund, with the added distinction of concentrating exclusively on space startups. Government equity in these startups is part of the plan, with an anticipated exit after the standard 12-year VC cycle.
The fund’s objective is to support approximately 40 startups, with investment ticket sizes ranging from Rs 10 crore to Rs 60 crore, depending on each startup’s developmental trajectory and long-term prospects. Goenka projected an annual investment of Rs 200 crore to Rs 250 crore, aligning with industry demands and growth opportunities. By the April-June quarter of FY26, IN-SPACe envisions the fund being fully operational.
Fostering Foreign Direct Investment
The venture fund is poised to attract Foreign Direct Investment (FDI) into India’s space sector, with a particular focus on startups and MSMEs. Goenka pointed out the tendency of investors to monitor government funding flows, leading international investors to follow suit. Approximately ten companies are expected to reach substantial revenues in the upcoming fiscal year, sparking increased interest and paving the way for private equity funding rather than reliance on angel investors.
As of now, total investments in space startups have reached $300 million, a significant increase from $120 million reported in April. India’s space economy is currently valued at around $8.4 billion, accounting for a 2% share of the global space market. Government ambitions aim to elevate the space economy to $44 billion by 2033, with exports constituting $11 billion, capturing 7-8% of the global share.
Development of Space Law
Looking ahead, IN-SPACe has finalized a draft for a new space law, with consultations anticipated to commence between January and March. Once enacted, this law will endow IN-SPACe with legal and punitive powers, transitioning it from its current status, established by gazette notification from the government of India, into a legal regulatory body. This change will bolster its capacity to make legally binding decisions.
In terms of infrastructure, IN-SPACe is playing a pivotal role in supporting the country’s private space sector to facilitate growth. With ISRO’s projected increase in activity over the next decade, IN-SPACe is stepping in to create private infrastructure to complement ISRO’s efforts, ensuring robust support for the private ecosystem.
Ensuring Fair Play in Satellite Communications
On the matter of fair competition between Indian and multinational satellite communication companies, the government process is deemed well-structured. Goenka expressed confidence in the Telecom Regulatory Authority of India (TRAI) to address the issue, underscoring IN-SPACe’s input in the proceedings. A resolution is anticipated in the forthcoming month and a half.
Progress on Starlink and Kuiper Applications
IN-SPACe is advancing its review of authorization applications from Elon Musk’s Starlink and Amazon’s Kuiper, having requested additional information and clarification from these applicants. While specific details remain undisclosed, the body has raised queries that are in the process of being addressed. Two companies, Eutelsat OneWeb and Jio-SES, have already obtained clearance.
The approval process for satellite communication licenses involves two essential permits: the General Mobile Personal Communication by Satellite Services (GMPCS) from the Department of Telecommunications (DoT) and another from IN-SPACe. Starlink and Kuiper are concurrently seeking regulatory approval for satellite broadband services while awaiting a GMPCS license.
Government sources confirm that the telecom department is reviewing Starlink’s application for a license to offer satellite broadband services. Starlink has committed to meeting specific security and data storage mandates set by the government. The next step involves an official application submission to the DoT.
