IN-SPACe and SIDBI Launch Rs1,000-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 Rs 1,000-crore Venture Capital (VC) Fund to support India’s growing private space sector . The initiative is designed to provide early-stage and growth capital for startups developing innovative technologies across the space value chain.

Formal Launch and Regulatory 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 fund has received SEBI approval and was cleared by the Union Cabinet in October 2024 . SIDBI will act as the fund manager, ensuring transparent and efficient deployment of capital.

Investment Focus and Strategic Goals

• The VC fund will focus on startups working in satellite manufacturing , launch vehicle development , earth observation , communication systems , and downstream analytics . It aims to strengthen indigenous capabilities , drive innovation , and attract private investment into a sector long dominated by government agencies. By bridging the funding gap, the initiative supports India’s broader vision of building a self-reliant and globally competitive space economy .

Institutional Collaboration and National Impact

• IN-SPACe officials described the move as a key enabler of the ‘Atmanirbhar Bharat’ mission. “This fund will give startups the financial support needed to develop indigenous technologies and commercial products,” said Lochan Sehra. SIDBI’s CEO, Arup Kumar, added that the space sector is a “frontier for innovation and national growth,” emphasizing the fund’s role in nurturing entrepreneurship and expanding India’s footprint in the global space industry.

Exam Pointers

• Fund Size:  Rs1,000 crore

• Approved by: Union Cabinet (October 2024)

• Managed by: SIDBI Venture Capital Limited (SVCL)

• Regulator: SEBI

• Focus Areas: Satellites, launch vehicles, communication, analytics

• Related to: Space Sector Reforms & Private Sector Participation in Space