India's private space sector is poised for a significant financial breakthrough, with leading startups setting their sights on generating substantial revenue starting in 2026. This shift comes as marquee investors demonstrate growing confidence, backing companies with large funding rounds to fuel their ambitious scaling plans.
Major Funding Fuels Expansion Plans
In a landmark development for the sector, Bengaluru-based space situational awareness company Digantara raised $50 million in its Series-B funding round. This achievement places Digantara alongside Skyroot Aerospace as the only two Indian space startups to have secured $50 million or more in a single funding round. The investment, which includes backing from prominent firms like Peak XV, signals a strong vote of confidence from the venture capital community.
Digantara plans to utilize this capital to establish its own manufacturing lines for satellites and optical communication technologies. Furthermore, the company aims to double its research and development team by 2026. CEO Anirudh Sharma revealed that the core objective behind this expansion is to commence significant revenue generation from the next year. "By FY27, we're eyeing annual revenue of $30 million," Sharma stated, noting that around 80% of this is expected to come from government-sector clients within India.
Launch Services Prepare for Commercial Takeoff
Meanwhile, rocket launch service providers are also gearing up for their maiden commercial missions. Skyroot Aerospace, India's most-funded space startup with total funding of $95 million, is targeting its first commercial rocket launch from Indian soil by March 2026. The company, which raised $51.5 million in September 2022, anticipates generating up to $6 million in revenue from each launch of its indigenously built, 3D-printed rocket.
"We expect to start generating operating revenue from the first launch itself," said Skyroot CEO Pawan Chandana. The launch is planned to carry paying satellite customers, marking a crucial step towards financial sustainability.
They are joined by Chennai-based Agnikul Cosmos, which raised $17 million in a Series-C round in November 2025 at a valuation of $500 million. Agnikul similarly expects to conduct its first commercial rocket launch in the coming year, initiating its revenue stream.
Investors and Industry Stakeholders Bullish on Future
The consensus among industry leaders is that 2026 will be the pivotal year when space startups begin translating technological prowess into substantial financial returns. Pawan Kumar Goenka, Chairman of IN-SPACe (Indian National Space Promotion and Authorisation Centre), acknowledged that progress has been slow but is set to accelerate. "Starting 2026 and 2027, India will see the first top space startups begin to generate good revenue," he projected, with industry scaling expected from 2030 onwards.
Investors echo this optimism, linking future funding opportunities directly to revenue generation. Rajan Anandan, Managing Director at Peak XV, highlighted Digantara's unique global position and expressed strong belief in the sector's growth trajectory. He emphasized that the government's ₹1 trillion Research, Development, and Innovation (RDI) fund will be a key catalyst for the deep-tech ecosystem, including private space ventures.
Vamshi Krishna Reddy of Kalaari Capital reinforced this view, suggesting the timeline for significant revenue generation is now a "five-year question, perhaps," rather than a decade-long wait. The sector has a formidable target: IN-SPACe's 10-year vision aims for India to generate $44 billion in annual revenue from space activities by 2033, with segments like earth observation and launch services contributing billions.
