IN-SPACe, SIDBI Launch ₹1,000-Crore Venture Capital Fund

The Indian National Space Promotion and Authorisation Centre (IN-SPACe), in collaboration with SIDBI Venture Capital Limited (SVCL), has launched a ₹1,000-crore Venture Capital Fund to accelerate the growth of India’s private space ecosystem. The fund, formally approved by the Securities and Exchange Board of India (SEBI), will provide crucial early-stage and growth capital to startups engaged in space technologies, including launch systems, satellite manufacturing, payload development, and downstream applications.

Fund Objectives and Scope

The IN-SPACe–SIDBI Space VC Fund is designed to empower Indian startups by improving access to capital and nurturing indigenous innovation across the space value chain.

Key Focus Areas

• Launch Technologies: Funding companies developing launch vehicles and propulsion systems.
• Satellites & Payload Systems: Supporting startups engaged in satellite manufacturing and payload innovation.
• In-Space Services: Encouraging new solutions for in-orbit servicing, space manufacturing, and debris management.
• Earth Observation & Communication: Enhancing data-driven applications and communication networks.
• Downstream Applications: Investing in businesses that use space data for agriculture, climate, and defense.

Leadership Statements

Lochan Sehra, IAS, Joint Secretary, IN-SPACe, emphasized the fund’s strategic role, stating,

• “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.”

Arup Kumar, Managing Director & CEO of SIDBI Venture Capital Limited, added,

• “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, commercialize breakthroughs, and contribute to India’s emergence as a global space power.”

Background and Approval

The Union Cabinet approved the fund in October 2024 as part of India’s push toward privatizing and expanding the domestic space economy.

• SVCL, a wholly owned subsidiary of SIDBI, has been appointed as the Fund Manager.
• The Contribution Agreement was formally signed by Lochan Sehra (IN-SPACe) and Arup Kumar (SVCL), marking the start of investment operations.

Significance for India’s Space Ecosystem

The ₹1,000-crore fund represents a transformative step in India’s efforts to build a vibrant private space industry capable of contributing to global markets.

Expected Impact,

• Startup Empowerment: Fuel innovation and commercialization of new technologies.
• Indigenization: Strengthen domestic capabilities in critical space technologies.
• Economic Growth: Create high-value jobs and boost India’s share in the global space economy.
• Strategic Leadership: Position India as a leading hub for affordable and sustainable space solutions.

Key Facts: IN-SPACe–SIDBI Space Venture Capital Fund

• Fund Size: ₹1,000 crore
• Partners: IN-SPACe & SIDBI Venture Capital Limited (SVCL)
• Fund Manager: SVCL (100% subsidiary of SIDBI)
• Approval: Union Cabinet (October 2024); SEBI clearance granted
• Purpose: To provide early-stage and growth capital for space startups
• Focus Areas: Launch technologies, satellites, payloads, in-space services, earth observation, communication, and downstream applications
• Officials Present: Lochan Sehra, IAS (IN-SPACe) and Arup Kumar (SVCL)