IN-SPACe, SIDBI Unveils ₹1,000 Crore Fund for Indian Space Startups

The Indian National Space Promotion and Authorisation Centre (IN-SPACe) and SIDBI Venture Capital Ltd have signed an agreement to start a ₹1,000 crore venture capital fund for startups in the Indian space sector. 

The signing took place after the Securities and Exchange Board of India (SEBI) gave its approval on October 31, 2025. This is the formal beginning of the fund’s investment activities.

Cabinet Approval and Setup

The Union Cabinet had approved the creation of the fund in October 2024. The plan was to provide dedicated financial support to startups working in space technology.

In March 2025, SIDBI Venture Capital Ltd was appointed as the fund manager. The organisation has prior experience in managing funds for early-stage and technology-driven companies.

Role and Purpose of the Fund

The ₹1,000 crore fund will provide early-stage and growth funding to startups working in different areas of space technology. 

This includes launch systems, satellite manufacturing, payload design, in-space services, and data-based applications such as communication and earth observation. The fund is intended to help companies progress from prototype stages to large-scale operations.

IN-SPACe’s Involvement

IN-SPACe functions as an autonomous body under the Department of Space and acts as a single-window agency for private sector participation in the space industry. The organisation is responsible for authorising, promoting, and supporting private enterprises involved in space-related activities.

Its collaboration with SIDBI aims to bring financial and operational structure to the sector.

Management by SIDBI Venture Capital Ltd

SIDBI Venture Capital Ltd, a subsidiary of the Small Industries Development Bank of India, will manage the fund. It will handle the selection, investment, and monitoring of startups supported under the scheme. The fund’s framework will follow SEBI’s guidelines for venture capital investments.

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Conclusion

The IN-SPACe–SIDBI venture fund is the beginning of structured financial support for India’s private space startups. It is expected to help emerging companies access capital and expand their role in the country’s growing space industry.

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