Spacetech Startup SatLeo Labs Pockets $3.3 Mn

Ahmedabad-based spacetech SatLeo Labs has raised $3.3 Mn (around INR 28 Cr) in a Pre-Series A funding round led by Merak Ventures, along with participation from Huddle Ventures, GVFL, Java Capital, IIMA Ventures, PointOne Capital and other angel investors.

The startup plans to use the fresh capital to develop its proprietary thermal imaging payload and boost research and development efforts. It also aims to ramp up its infrastructure setup and stead-fast pilot testing of its projects to further validate their technology and secure regulatory approvals.

Founded in 2023 by Shravan Bhati, Urmil Bakhai and Ranendu Ghosh, SatLeo Labs captures high-impact thermal and optical imaging data from low earth orbit (LEO) via its proprietary technology. This data represents the amount of infrared radiation emitting from objects and can be used to analyse the health of crops, measure climatic conditions and avoid natural disasters such as wildfires and for surveillance purposes in the defence sector.

Talking to Inc42, Bhakhai said that the current round is its maiden funding round and the startup aims to launch its product by early next year. “Our proprietary payload is currently under manufacturing and post pilot testing we will release it for commercial use.”

He further said that going forward they plan to build their own satellites which can provide thermal imaging data to its clients.

SatLeo claims to have secured over $25 Mn in letters of intent (LOIs) from potential clients.

“Thermal imagery from space is still vastly underutilised, and its commercial applications are only set to grow in ways we may not yet fully grasp. We’re backing them (SatLeo) for a genuine tech breakthrough that makes thermal data more useful, accessible and affordable,” said  Sheetal Bahl, partner at Merak Ventures.

The funding comes at a time when there is a huge push from the government to shift its focus in developing the country’s deeptech sector. Early this month, union minister Piyush Goyal had given a ‘reality check’ to the Indian startup ecosystem which stirred a huge debate over the country’s inability to produce deeptech startups.

Besides, according to Inc42’s Indian Startup Funding Report 2024, total funding raised by Indian spacetech startups fell 35% YoY to $81 Mn last year .

To meet this gap, the Centre has announced that a larger portion of the fund of funds announced worth INR 10,000 Cr will be deployed to fund deeptech startups in the country.

The spacetech market in India is poised to become a $44 Bn economy by 2030.