IN-SPACe, SIDBI Venture Capital sign ₹1,000 cr space sector fund deal

IN-SPACe and SIDBI Venture Capital have signed a contribution agreement to operationalise the Rs 1,000 crore venture capital fund aimed at boosting innovation and private participation in space sector

The Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Small Industries Development Bank of India Venture Capital Ltd (SIDBI Venture Capital Fund) on Monday signed the contribution agreement to operationalise the Rs 1,000 crore venture capital fund for the Indian space sector.

 

This signing marks the formal beginning of the fund’s investment activities following its approval by the Securities and Exchange Board of India (Sebi) on October 31 this year. IN-SPACe acts as a single-window, independent nodal agency functioning autonomously under the Department of Space (DoS).

 

How was the space venture fund conceptualised?

 

The Union Cabinet, chaired by Prime Minister Narendra Modi, had approved the establishment of the Rs 1,000 crore venture capital fund for the Indian space sector in October 2024. In March 2025, SIDBI Venture Capital Ltd was appointed as the fund manager, drawing from its deep experience in nurturing early-stage and technology-led enterprises across India.

 

What is the fund’s purpose and focus?

 

The fund is designed to provide critical early-stage and growth capital to startups working across launch technologies, satellites, payload systems, in-space services, earth observation, communication platforms, and downstream applications, enabling them to scale and contribute to national space capability.

 

What did IN-SPACe say about the fund’s potential?

 

Lochan Sehra, joint secretary, IN-SPACe, said, “This fund is a major enabler for India’s private space sector. It will support startups with the financial runway needed to test ideas, build indigenous technologies, and scale confidently. This signing strengthens our commitment to building a vibrant ecosystem where innovation flourishes and Indian enterprises become global leaders in space technology. We look forward to working closely with SIDBI as we implement this important national initiative.”

 

How will SIDBI support India’s private space startups?

 

Arup Kumar, managing director and chief executive officer, SIDBI Venture Capital Ltd (SVCL), said, “SVCL is committed to empowering India’s deep-tech and frontier technology entrepreneurs, and the space sector represents one of the most promising frontiers of national growth. This dedicated fund will give young companies the capital and confidence to innovate boldly, commercialise breakthroughs, and contribute to India’s emergence as a major space power. We are honoured to partner with IN-SPACe and the Government of India in advancing this mission.”

 

What does this mean for India’s space innovation ecosystem?

 

IN-SPACe continues to drive India’s vision of a self-reliant and globally competitive space sector by enabling private participation, supporting startups, and catalysing technological development. The operationalisation of this fund represents a significant step towards building a strong, innovation-driven, and future-ready space industry for India.