As startups expand spacetech innovations for data, funds remain a concern

Spacetech startups are leveraging small satellites, cost-effective launch solutions, and the use of AI to introduce affordable technology that has a wide range of applications

The Indian space technology sector is currently valued at $8.4 billion, but accounts for a mere 2 per cent of the global space economy. However, the sector is projected to hit $44 billion by 2033, capturing a larger slice of the global market, according to a whitepaper from consulting company KPMG at the TiE Global Summit held earlier this week in Bengaluru. 

 

The growth is expected to be driven by technological advancement, government support, and rising demand for space solutions. Expanding satellite communications, increased space data applications, and policies such as the Indian National Space Promotion and Authorization Center (IN-SPACe), which promotes private sector participation, are likely to contribute to the expansion of the sector, laying the ground for both innovation and investment. 

 

Key trends include the development of small satellites, cost-effective launch solutions and the use of AI and machine learning for complex missions. Startups are leveraging these trends to introduce affordable and efficient space technologies, even as funding remains a vulnerable area.  

 

The Indian Space Research Organisation (ISRO) is also assisting private companies in expanding their launch capabilities. This is coupled with the rise in startups developing advanced analytics in the sensing sector, which are key factors in evoking stakeholder interest in the ecosystem, according to the KPMG report. 

 

For instance, Pixxel, a US/India-based space technology company is building the world's highest-resolution hyperspectral satellite constellation that will act as a health monitor for the planet through advanced earth observation satellites and will drive impactful climate action. The company recently closed $24 million in additional funding, bringing its total Series B funding to $60 million, and a total of $95 million across all funding rounds to date. The Series B extension round added new investors, M&G Catalyst and Glade Brook Capital Partners, who join existing backers Google, Radical Ventures, and Lightspeed. 

 

Similarly, PierSight, a spacetech startup, has developed Varuna, a maritime surveillance satellite that will be onboard ISRO’s PSLV launcher within a year as a secondary payload, and will help perform in-orbit experiments. 

 

Another spacetech startup GalaxEye is working on the world’s first Hybrid Synthetic Aperture Radar (SAR) and Multispectral Imaging (MSI) sensor satellite, which can deliver high-resolution, all-weather, multi-sensor data at any time of the day. The technology is expected to play a critical role across sectors and segments ranging from defence and surveillance to agriculture, maritime, and insurance, where accurate and timely satellite data is becoming increasingly indispensable. 

 

Pixxel is expected to use the funds to accelerate the development and launch of its constellation of 18 commercial hyperspectral satellites planned for the near future, besides supporting the growth of Pixxel's software offerings, including Aurora, its AI-driven Earth Observation platform. This will enable seamless analysis and actionable insights for diverse applications using hyperspectral data. 

 

“The new infusion of capital will help us launch more satellites quicker, transforming how humanity understands and acts on the challenges of our time,” said Awais Ahmed, founder and chief executive officer (CEO) of Pixxel. “We look forward to creating a world where industries and governments can act faster and smarter for the greater good ....” 

 

A new universe of applications 

 

Pixxel’s constellation of 6 commercial-grade hyperspectral satellites, called ‘Fireflies’ and set for an early 2025 launch, is designed to capture data across more than 250 spectral bands at an unparalleled 5-meter spatial resolution. This means spectrally fingerprinting the earth and delivering details invisible to conventional imaging methods, equipping organisations with the intelligence required to make informed, data-driven decisions in sectors as diverse as agriculture, climate monitoring, resource management, mining, environmental protection, energy, and urban planning. 

 

PierSight's proposed constellation of SAR and Automatic Identification System (AIS) satellites is aimed at providing persistent, near-real-time monitoring of all human activity at sea. This will be a vital tool to accurately track ship movements, detect oil spills, and geo-fence critical infrastructure such as undersea cables and pipelines, according to Gaurav Seth, CEO and co-founder of PierSight.  

 

According to Suyash Singh, CEO and co-founder, GalaxEye, a key factor in the company’s rapid progress has been its capital-efficient approach to technology validation.  

 

“Instead of relying on costly satellite launches or deploying subsystems in orbit, the team utilised Drones and High-Altitude Pseudo-Satellites (HAPS) to test our hardware designs and algorithms. With over 400 successful flight tests, the technology has been proven to achieve significant Technology Readiness Levels (TRLs), demonstrating its feasibility and reliability,” he said. 

 

Founded in 2021, GalaxEye recently raised $20 million in series A funding, as it looks to launch its first of many satellites sometime next year. In addition to the launch, the firm is broadening its reach by commercialising its cutting-edge imaging technology for drones and further developing its prototype for HAPS. 

 

Funding remains elusive  

 

Unfortunately, even as technological innovation continues in India’s spacetech sector, industry watchers caution that greater infusion of funds is critical.  

 

Funding for Indian spacetech startups remains a cause of concern – it fell 69 per cent to $40.1 million in 2024 so far, down from $128 million the previous year and $98 million in 2022. The decline comes even as funding has increased at an overall level in the Indian startup ecosystem this year. 

 

Nonetheless, there remains significant potential for investors, with opportunities to develop new satellite technologies, improve launch capabilities and expand space-based services. As startups continue to innovate, they are also likely to play a crucial role in advancing global space infrastructure, making India a significant player in the global space economy.