Sidbi VC to manage Rs 1,000 crore venture capital fund for space sector

SIDBI Venture Capital Limited has been selected as the fund manager for Rs 1,000 crore venture capital fund announced by the government to support private sector firms in the space technology domain.

The Indian National Space Promotion and Authorisation Centre (IN-SPACe) made the announcement in this regard on Friday.

"M/s SIDBI Venture Capital Limited is selected as the Fund Manager / Investment Manager for the Rs 1,000 crore Venture Capital Fund for the Indian Space Sector," the IN-SPACe said in a statement.

The fund will deploy the amount earmarked for it over a period of five years, with a planned deployment of Rs 150 crore in the 2025-26 financial year followed by Rs 250 crore each in the next three financial years and Rs 100 crore in 2029-30.

"The indicative range of investment is proposed to be Rs 10 crore-Rs 60 crore, contingent upon the stage of the company, its growth trajectory and its potential impact on national space capabilities," the government said in an announcement.

One of the objectives of the fund is to counter the "trend of Indian companies domiciling abroad", the government said.

"The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund start-ups in this high-tech sector," it said.

The fund will focus on early-stage investments and will bank on firms to be able to raise "further private equity investments". However, even late-stage firms will receive investments ranging from Rs 30 crore to Rs 60 crore. The firms in the early stage will receive half that range.

India aims to increase the estimated value of the domestic "space economy" from the current $8.4 billion to $44 billion by 2033.