IN-SPACe And SIDBI Launched ₹1,000-Crore VC Fund for India’s Space Startups

The Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Small Industries Development Bank of India (SIDBI) have jointly launched a ₹1,000-crore Venture Capital Fund to strengthen India’s private space ecosystem. The fund aims to boost innovation, enhance indigenous capabilities, and scale up emerging enterprises in the fast-expanding space sector.

Formal Launch and SEBI Approval

The agreement to operationalise the fund was signed between Lochan Sehra, IAS, Joint Secretary of IN-SPACe, and Arup Kumar, Managing Director and CEO of SIDBI Venture Capital Limited (SVCL), a wholly owned subsidiary of SIDBI. The signing follows approval from the Securities and Exchange Board of India (SEBI) and marks the formal commencement of investment activities. The initiative, cleared by the Union Cabinet in October 2024, positions SIDBI as the fund manager.

Investment Focus and Strategic Objectives

The fund will focus on providing early-stage and growth capital to startups engaged in diverse areas, including satellite manufacturing, launch vehicle development, in-space services, earth observation, communication systems, and downstream analytics. By targeting innovative ventures across the value chain, the initiative seeks to stimulate entrepreneurship and attract private capital into a sector traditionally dominated by government agencies.

Institutional Collaboration and National Vision

IN-SPACe officials highlighted that the partnership with SIDBI represents a major milestone in realising the government’s vision of an inclusive space economy. “This fund is a major enabler for India’s private space sector,” said Lochan Sehra, Joint Secretary, IN-SPACe. He noted that it will offer startups the financial runway to build indigenous technologies and commercial products for global competitiveness.

Exam Oriented Facts

• The ₹1,000-crore Space Venture Capital Fund was approved by the Union Cabinet in October 2024.
• SIDBI Venture Capital Limited (SVCL) will manage the fund under SEBI approval.
• The fund supports startups across satellites, launch vehicles, and downstream space services.
• IN-SPACe operates under the Department of Space to promote private sector participation.

Boost to Private Space Ecosystem

SIDBI’s CEO Arup Kumar stated that the space sector is a key frontier for national growth and innovation. The fund will encourage entrepreneurs to pursue cutting-edge research, commercialise indigenous technologies, and contribute to India’s growing reputation as a global space power. The collaboration is expected to catalyse a robust private space ecosystem, aligning with the government’s long-term goals under the ‘Atmanirbhar Bharat’ mission.