India's space startups team up to share skills and expertise, minimise risk

India’s 350-odd space startups are preparing to explore new frontiers. The funding that has flowed in since the government opened the space sector to private entities in June 2020 has propelled their ambitions to new heights. To realise those ambitions, which demand multiple capabilities, many of them are teaming up.

 

According to the Indian Space Association (Ispa), collaborations and alliances between these startups are becoming a defining feature of the country’s space ecosystem as it races towards a projected $44 billion space economy by 2033, up from about $9 billion today. Tie-ups are taking shape across the board: Kepler with Astrome, Pixxel with Dhruva Space, Dhruva with SatSure, Kawa with Azista and Kepler, Bellatrix with Skyroot, and so on.

 

When it comes to space, no single startup has all the capabilities, says AK Bhatt, director general of ISpA. Collaboration allows them to share technologies, pool energies, and lower financial risks, he adds.

 

The boldest example so far came earlier this month when a consortium of four domestic startups — PixxelSpace India, PierSight Space, SatSure Analytics, and Dhruva Space — won the bid to design, build, and operate India’s first fully indigenous commercial Earth Observation (EO) satellite under a public-private partnership (EO-PPP) model. The deal, worth ₹1,200 crore, is the largest private investment in Indian space so far. 

 

What stood out was the group’s zero-cost bid. Though the government is offering up to ₹350 crore in financial support, these companies have opted to bear the entire investment themselves.

 

“The project will enhance India’s data sovereignty, reduce dependence on foreign imagery, and ensure that all satellites are manufactured domestically, launched on Indian rockets, and controlled from within the country,” says Pixxel Chief Executive Officer Awais Ahmed. This will increase India’s Earth Observation market.

 

With this collaboration, Pixxel’s strength in hyperspectral satellites will be complemented by SatSure’s multispectral expertise, Piersight’s Synthetic Aperture Radar (Sar) capability, and Dhruva’s hardware and component work, demonstrating how interdependent skills can be stitched together.

 

Gaurav Seth, co-founder and CEO of Piersight, highlights the immediate domestic opportunity: “The Indian government alone needs about ₹1,400 crore worth of geospatial data every year. Now that demand will be shared with Indian companies, ensuring complete localisation and stronger data security.”

 

Under the PPP model, the government will provide policy, strategic, and technical support, while the PixxelSpace India-led consortium will own and operate the EO system. This will include manufacturing satellites, launching them from Indian soil, setting up ground stations, and commercialising data services. The startups will also be free to chase global customers, with the government acting as an anchor client.

 

More collaborations are expec­ted down the chain. The EO-PPP consortium, for instance, may well rely on launch vehicles from startups like Agnikul or Skyroot, or small satellite launchers being developed by Hindustan Aeronautics Ltd.

 

The Indian National Space Promotion and Authorisation Centre (IN-SPACe), the nodal agency under the Department of Space to foster the growth of the country’s private space sector, had kicked off the bidding process about a year ago. 

 

Competition was stiff. Around 30 companies applied for the project, of which three groups were shortlisted, including Astra Microwave Products (with Bharat Electronics Ltd, Sisir Radar and Spectragaze Systems) and Bengaluru-headquartered GalaxEye Space (with CoreEL).

 

Shared strengths

Bhatt says these alliances are pragmatic. By sharing labs, test facilities, and infrastructure, and co-investing in missions, startups can cut costs in what remains a capital-intensive sector, he says. Startups working in propulsion, satellites, launch services, and data analytics can combine their expertise. Both IN-SPACe and Ispa are also pushing for international tieups.

 

One such smart collaboration is between Skyroot and Bellatrix. Bellatrix’s Orbital Transfer Vehicle is being integrated with Skyroot’s Vikram launch vehicles to enhance upper-stage performance.

 

“Going forward, Indian companies will not only collaborate domestically but also globally. The most successful will be those that embrace cooperation,” Bhatt says.

 

Foreign tie-ups are already coming about. KaleidEO has struck partnerships in the US space and defence sectors, while InspeCity has linked up with Japan. Skyroot is working with partners in Japan, France, and US-based Axiom Space. Digantara has tie-ups in the US, Singapore, and Japan. Dhruva has built networks in France, the United Arab Emirates, Australia, and Italy. Agnikul, meanwhile, counts partners in nearly nine countries.

 

“Space has multiple verticals. For any company to succeed, it has to bring together expertise across domains,” Bhatt points out. “The EO-PPP consortium is the best example — four startups combining strengths to create solutions for multiple industries.” 

Adding to the momentum is the flow of funding to the sector. Till August this year, Indian space startups raised about $59 million, compared with $82 million in all of last year. Calendar 2022 was even better, at $126 million. Industry watchers expect investments to rise as domestic demand grows and global orders begin to flow.

 

The space sector may still be in its infancy, but the collaborative approach is giving startups the ability to take on larger projects, and the confidence to fund them independently. As India sets its sights on becoming a space economy powerhouse, partnerships could well be its most powerful launchpad. 

Tieups within Indian space sector

• Kepler & Astrome
• Pixxel & Dhruva Space
• Dhruva Space & SatSure
• L&T & HAL
• Skyroot & Dhruva
• Bellatrix & Skyroot
• Kawa, Azista & Kepler
• Ananth Technologies & Digantara
• Consortium for EO PPP and SBS 3