IN-SPACe Floats Fund To Support Spacetech Startups

IN-SPACe Floats Technology Adoption Fund To Support Spacetech Startups

SUMMARY

IN-SPACe launched INR 500 Cr Technology Adoption Fund to support spacetech startups with funding up to INR 25 Cr per project

The fund will cover 60% of project costs for startups/MSMEs and 40% for larger industries, focusing on satellite technology, propulsion systems and ground station infrastructure

The initiative follows the government's INR 1,000 Cr VC fund announcement and comes amid rising spacetech investments, which crossed $100 Mn annually

The Indian National Space Promotion and Authorization Centre (IN-SPACe) has rolled out the Technology Adoption Fund (TAF) worth INR 500 Cr to financially support the nation’s space technology startups and enable them to build commercially viable products while reducing dependence on imported solutions.

“The fund will offer financial support of up to 60% of the project cost for startups and MSMEs, and 40% for larger industries, with a maximum funding cap of INR 25 Cr per project,” said Pawan Goenka, chairman, IN-SPACe.

“We have designed this fund to help innovators bridge the gap between early-stage development and commercialization. This support will enable companies to refine their technologies, enhance production processes, and meet market demands both within India and abroad. Our focus is on enabling practical solutions that can be quickly integrated into the space ecosystem”, he added.

The TAF is expected to start reviewing applications from March 2025, focusing on key areas including satellite technology, propulsion systems, and ground station infrastructure, IN-SPACe said in a statement.

The launch aligns with recent developments in India’s space sector.

In July last year, IN-SPACe invited proposals from Indian startups to build an earth observation system, with funding thresholds of INR 85 Cr for established companies and INR 42.5 Cr for startups.

Speaking at the National Space Day in August last year, Goenka highlighted the growth in India’s space startup ecosystem, noting a fivefold increase in space startups over five years, with investments crossing $100 Mn annually.

Recently, in the budget, the government announced an INR 1,000 Cr venture capital fund for spacetech startups.

According to Inc42’s data, Indian spacetech startups have raised over $285 Mn between 2014 and 2023, with the sector projected to reach $77 Bn by 2030.