Team Startupcity

• IN-SPACe and SIDBI Venture Capital Ltd (SVCL) signed a Contribution Agreement to operationalize a Rs 1,000 crore Venture Capital Fund for India’s private space sector.
• The Fund, approved by SEBI on 31 October 2025, aims to provide early-stage and growth capital to startups in satellites, launch tech, in-space services, earth observation, and downstream applications.
• The initiative supports India’s vision for a self-reliant and globally competitive space ecosystem, enabling startups to innovate, scale, and contribute to national space capabilities.

IN-SPACe and the Small Industries Development Bank of India Venture Capital Ltd (SVCL) today signed the Contribution Agreement to operationalise the Rs 1,000 crore Venture Capital Fund for the Indian space sector. The event marks the formal start of investment activity by the Fund, that received the approval of the Securities and Exchange Board of India (SEBI) on 31 October 2025.

The agreement was inked today between Shri Lochan Sehra, IAS, Joint Secretary, IN-SPACe and Shri Arup Kumar, Managing Director and CEO, SIDBI Venture Capital Limited (SVCL, a 100% subsidiary of SIDBI). The signing was also attended by Shri Ratnesh Kumar, Deputy Director (F&A), IN-SPACe, and Shri Rajesh Kohli, Assistant Director (F&A), IN-SPACe, who represented the financial and operational leadership involved in structuring the Fund. Dr. Pawan Goenka, Chairman, IN-SPACe, addressed the ceremony virtually and conveyed his support for the activation of the Fund and its role in catalysing India's private space ecosystem.

The Union Cabinet, headed by Hon'ble Prime Minister Shri Narendra Modi, accorded sanction to establish the Rs 1,000 crore Venture Capital Fund for the Indian space sector in October 2024. Subsequently, in March 2025, SIDBI Venture Capital was engaged as the Fund Manager, given its rich experience in nurturing early-stage and technology-led enterprises across India.

The Fund is designed to provide critical early-stage and growth capital to startups working across launch technologies, satellites, payload systems, in-space services, earth observation, communication platforms, and downstream applications, with a vision to scale and contribute to national space capability.

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Shri Lochan Sehra, IAS, Joint Secretary, IN-SPACe, said, “This Fund is a major enabler for India’s private space sector. It will support startups with the financial runway needed to test ideas, build indigenous technologies, and scale confidently. Today's signing strengthens our commitment to building a vibrant ecosystem where innovation flourishes and Indian enterprises become global leaders in space technology. We look forward to working closely with SIDBI as we implement this important national initiative”.

Shri Arup Kumar, Managing Director and CEO, SVCL, “SIDBI is committed to empowering India’s deep-tech and frontier technology entrepreneurs, and the space sector represents one of the most promising frontiers of national growth. This dedicated Fund will give young companies the capital and confidence to innovate boldly, commercialise breakthroughs and contribute to India’s emergence as a major space power. We are honoured to partner with IN-SPACe and the Govt of India in advancing this mission”.

IN-SPACe continues to drive the vision of India for an 'Atmanirbhar' and 'globally competitive' space sector through private participation, startup support, and catalyzation of technological development. The operationalization of this fund is a big step towards creating a strong, innovative, and future-ready space industry for India.