India’s ₹1,005 Crore Space Venture Fund Set to Back Startups from FY2027: Dr Jitendra Singh

India's ambitious push to build a globally competitive space economy has taken a major step forward, with the Antariksh Venture Capital Fund moving into its operational phase. Union Minister Dr Jitendra Singh announced that investments in selected spacetech startups are expected to begin from the first quarter of FY2027.

Responding in the Lok Sabha during the Budget Session, the Minister highlighted steady progress in establishing the fund's institutional framework and evaluating potential beneficiaries.

₹1,005 Crore Fund to Power India's Space Startup Ecosystem

The Antariksh Venture Capital Fund, designed to catalyse innovation in India's rapidly growing spacetech sector, has been:

• Managed by SIDBI Venture Capital Limited (SVCL)

• Registered with SEBI on October 31, 2025

• Achieved initial closure on November 10, 2025

• Backed by a committed corpus of ₹1,005 crore

The fund is structured as an Alternative Investment Fund (AIF), aimed at providing growth capital to startups working in satellite technology, launch systems, space applications, and downstream services.

Institutional Framework in Place

Dr. Jitendra Singh informed that key operational mechanisms have already been established, including:

• Appointment of a custodian

• Registration with depositories for AIF unit issuance

• Formation of Screening and Investment Committees

These steps mark the transition of the fund from planning to active investment readiness.

Startup Evaluation Underway

The Minister revealed that evaluation of spacetech startups is currently in progress, with:

• Four proposals at an advanced stage

• These have already received Pre-Investment Committee approval

Further processes, including detailed appraisal, third-party due diligence, and documentation, are underway before final funding decisions.

Focus on Handholding and Ecosystem Building

Recognising the nascent stage of India's spacetech startup ecosystem, the government is adopting a supportive, facilitative approach rather than a purely financial one.

Startups are being provided:

• Guidance on data and documentation standards

• Support in meeting due diligence and compliance requirements

• Assistance in aligning with institutional investment frameworks

"This handholding approach is crucial to ensure that promising startups are not left behind due to procedural gaps," the Minister noted.

Investments to Begin in Early FY2027

Following completion of evaluation and compliance processes, the first round of funding approvals and disbursements is expected in early FY2027, marking the beginning of structured venture funding in India's space sector.

Boost to Private Participation in Space

The initiative is a key pillar of India's broader strategy to:

• Encourage private sector participation in space activities

• Foster innovation and entrepreneurship in spacetech

• Strengthen India's position in the global space economy

With reforms already opening up the space sector to private players, the venture fund is expected to provide the financial backbone needed for scaling innovation.

Towards a Global Space Power

India's spacetech ecosystem has witnessed rapid growth in recent years, with startups working on:

• Small satellite launch vehicles

• Earth observation and geospatial analytics

• Satellite communication and downstream applications

The Antariksh Venture Capital Fund is expected to accelerate this momentum, helping Indian startups compete globally.

Dr Jitendra Singh reaffirmed that the initiative represents a strategic investment in India's future, aimed at building a robust, innovation-driven, and globally competitive space ecosystem.