Spacetech Startup Digantara Bags Funding From Aditya Birla Ventures, SIDBI

Spacetech startup Digantara on Wednesday (February 28) said it has marked the final close of its Series A1 funding round at $12 Mn (around INR 99 Cr). 

The round comprised two tranches. In the first leg, the company raised $10 Mn led by Peak XV Partners in June last year, while in the second leg, it secured $2 Mn from Aditya Birla Group’s VC arm Aditya Birla Ventures and government-owned lender Small Industries Development Bank of India (SIDBI).

While announcing the fundraise, the startup had said that it would deploy the fresh proceeds to to further develop its revolutionary Space-Mission Assurance Platform (Space-MAP), which intends to be a one-stop solution for all space operations. 

Besides deploying the first phase of its space-based surveillance satellite constellation, the capital would also allow the company to accelerate the development of its downstream Space Situational Awareness (SSA) service with the aim to offer them in a comprehensive manner by Q2 2024.

Founded in 2018 by Anirudh Sharma, Rahul Rawat and Tanveer Ahmed, Digantara is working on building a sustainable space ecosystem by developing a space debris detector. It aims to create a constellation of satellites to track objects as small as 1 cm. 

The company also aims to expand its global footprint by extending its  offerings to the US, UK and EU. 

“The upcoming year will also see the launch of two space-based SSA sensors and the operationalisation of two state-of-the-art observatories in India,” the company said in a statement.

Sharma said, “This move is a powerful indicator of the momentum building within India’s space ecosystem.”

“Spacetech is indeed the next frontier for innovation offering unprecedented opportunities for growth. The global space market is expected to cross $1 Tn by the next decade. We recognise the extraordinary potential for innovation in India and its capacity to become a significant global player in this domain,” said Aryaman Vikram Birla, founder, Aditya Birla Ventures.

“Our investment from SVCL highlights our belief in the sector’s power to enhance India’s prominence on the world stage, marking a significant leap in our nation’s progress,” S Ramann, CMD, SIDBI.

As of now, only 4% of the objects in space orbit are tracked, thus leaving a significant gap in the surveillance and management of the rest of the millions of objects in space. As a result, the company claims to address the difficulties of space operations and situational awareness. 

Prior to this, the company raised its seed funding of $2.5 Mn from Kalaari Capital in 2021.

It must be noted that in June 2022, Digantara, along with Dhruva Space, received the approval from the Indian Space Promotion and Authorisation Centre (IN-SPACe) to launch its payloads in space. 

Digantara has also launched its proprietary Military and Defense Suite designed STARS (Space Threat Assessment & Response Suite), to bolster national sovereign space capabilities. 

STARS is already in beta service with select government agencies in Singapore, the UK, Australia, and India for space situational awareness tailored for the global defence sector.

Over a past decade, India has seen a unprecedented boom of spacetech startups, ushering in fresh perspectives, tech innovation and a competitive edge.

The spacetech startups are navigating the next frontier with support and collaboration from the government and the private sector. 

In July last year, the GST Council set the launchpad for spacetech startups with a 0% GST regime. During the 50th meeting of the Council, Finance Minister Nirmala Sitharaman highlighted that the initiative was aimed at fostering emerging startups in the rapidly growing spacetech sector.

The buzz in this burgeoning sector has been such that last year alone as many as 100 spacetech startups got registered with the Indian Space Research Organisation (ISRO). Further, Microsoft joined hands with ISRO in January 2023 to fuel the growth of spacetech startups in India. 

Of the major spacetech startups in India include Agnikul, Digantara, Bellatrix, Pixxel, Skyroot, etc.

As per Inc42’s Indian Spacetech Startup Landscape & Market Opportunity Report 2023, over 150 startups have collectively raised more than $285 Mn. Moreover, the sector is estimated to reach a market size of $77 Bn by 2030.