Spacetech startups receive Rs 211 Cr under Fund of Funds from Indian Government
India’s expanding space-tech industry is getting a big boost thanks to the Union Government’s announcement of an investment support of Rs 211 crore, or about $25 million, under the Fund of Funds for Startups (FFS) scheme.
According to Union Minister Piyush Goyal, the investment will provide vital resources to domestic space technology innovators, establishing India as a growing space power on a global scale. The government is dedicated to promoting innovation, youth-led entrepreneurship, and the revolutionary use of space technology, all of which are guided by Prime Minister Narendra Modi’s vision.
By assisting SEBI-registered Alternative Investment Funds (AIFs), which subsequently invest in startups, the FFS scheme, which is operationalized by SIDBI, stimulates venture capital investments. As of June 30, 2025, 141 AIFs had received commitments totaling Rs 9,994 crore; these AIFs are required to invest at least twice as much in startups.
Over 350 startups are actively innovating in the space sector, which has grown rapidly in India, according to market research. In the last ten years, the nation’s space budget has also nearly tripled, from Rs 5,615 crore in FY14 to Rs 13,416 crore in FY26.
A Rs 1,000 crore funding plan to support startups in the space sector was announced earlier this year in March by Union Minister Jitendra Singh. Prime Minister Narendra Modi recently issued a daring challenge to India’s spacetech startups: increase the number of rocket launches from the current 5–6 to 50 per year and produce five unicorns in the next five years.
Reliance Industries is currently negotiating to lead Digantara Research & Technologies’ $50 million (Rs 430 crore) funding round. It would join Skyroot, Pixxel, NewSpace, Agnikul Cosmos, SatSure, and other well-funded Indian spacetech startups in this regard.
