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India’s spacetech sector witnessed record-breaking funding of $126 million in 2023 -- a 7 per cent increase from the $118 million raised in 2022 and a whopping 235 per cent increase from $37.6 million in 2021, a report showed on Tuesday. 

In 2024, the year-to-date funding for the sector stands at $10.8 million.

Despite a global slowdown in funding, the spacetech sector has been experiencing an upward trend, driven by substantial government support and significant innovations, according to data provided by market intelligence firm Tracxn.

There are more than 100 spacetech startups, the majority of them being founded in the last five years. The Union Budget’s funding of Rs 1,000 crore is expected to boost the industry significantly, attracting more entrepreneurship and investment in the coming months.

Currently, the country boasts 55 active space assets, including communication, meteorological, and earth observation satellites.

“The significant funding and strategic investments we're seeing now are setting the stage for India to become a major player in the global space industry,” said Neha Singh, Co-founder of Tracxn.

The combination of solid early-stage funding and supportive government policies will be key to driving this growth and establishing India as a leading centre for space exploration and technology, Singh noted.

In 2023, early-stage rounds attracted $120 million of the total $126 million raised, reflecting a notable growth from $114 million in 2022, which represents a 5 per cent increase.

In 2024, early-stage funding has reached $8.5 million to date.

Seed-stage funding has also seen a significant rise, growing from $4.3 million in 2022 to $5.3 million in 2023, marking a 24 per cent increase.

However, despite this growth in early-stage and seed-stage funding, the nascent ecosystem for private sector participation in Indian Space Tech startups has not yet experienced any late-stage funding, the report said.

Skyroot Aerospace leads as the highest-funded active space tech startup in India, with overall funding of $99.8 million, followed by Pixxel at $71.7 million and Agnikul at $61.5 million.

No other startup in this segment has raised funds above $50 million.

Despite the vibrant funding landscape, no acquisitions have been observed in 2024.

The only acquisition to date is the 2022 purchase of Prakshep, a satellite imagery provider for the agricultural industry, by Arya.

Bengaluru leads the list of top-funded cities in India's spacetech sector, followed by Hyderabad and Chennai.