India's Largest Spacetech Fund Takes Off with ₹1,005 Crore First Close
The Small Industries Development Bank of India's venture capital arm, SIDBI Venture Capital Limited (SVCL), has successfully achieved the first close of its groundbreaking Antariksh Venture Capital Fund (AVCF), securing ₹1,005 crore for investment in India's burgeoning space technology sector. This marks a significant milestone in the country's ambitions to become a major player in the global space economy.
IN-SPACe Anchors Historic Space Investment Initiative
The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has emerged as the anchor investor in this pioneering fund, committing an impressive ₹1,000 crore as part of the initial closing. This substantial government backing underscores the strategic importance of developing indigenous space capabilities and reducing dependency on foreign technology.
Envisioned as a ₹1,600 crore fund, AVCF represents SVCL's twelfth investment vehicle and is officially registered as a category II alternative investment fund with a ten-year tenure. The fund will strategically deploy capital across both early-stage and growth-stage spacetech companies, covering critical segments including launch systems, satellites and payloads, earth observation, communications, and downstream applications.
Fueling India's Space Ambitions Through Strategic Investments
Arup Kumar, Managing Director and Chief Executive at SVCL, emphasized the fund's national significance in a prepared statement: "The Antariksh Venture Capital Fund, India's largest spacetech-focused fund and among the largest globally, will play an instrumental role in advancing national space capability and competitiveness."
SVCL has announced it will immediately begin deploying capital from the fund while simultaneously seeking additional funding from both domestic and international investors. The organization will also approach institutional and sovereign investors under the green-shoe option, potentially expanding the fund's total corpus beyond its current target.
Thriving Spacetech Ecosystem Gets Major Boost
This landmark fund arrives at a crucial juncture for India's space industry, which has witnessed an explosion of innovative startups in recent years. The government has set an ambitious target for the country's space sector to generate $44 billion in annual revenue by 2033, and AVCF represents a critical step toward achieving this goal.
India's spacetech landscape already features several promising ventures that could benefit from this new funding source. Notable examples include Pixxel, a hyperspectral satellite imaging company; AgniKul Cosmos, an aerospace manufacturer and commercial launch service provider; Bellatrix Aerospace, specializing in small satellite manufacturing; and GalaxEye, an imaging satellite company.
The emergence of generalist venture capital funds in the deeptech space represents another positive development for the sector. Traditionally dominated by specialized investors, India's deeptech ecosystem is now attracting attention from mainstream VC firms including Accel, Lightspeed, Elevation Capital, and Peak XV Partners, creating larger capital pools for innovative startups.
This increased investor interest comes as the United States and China engage in intense competition for technological dominance, with India strategically positioning itself as a meaningful third player in the global technology arena. The successful first close of the Antariksh Venture Capital Fund signals strong confidence in India's ability to compete in the high-stakes space technology sector.
