Space technology in investors’ spotlight

From companies building palm-sized satellites to those aiming to propel satellites into space using cleaner fuels, a new wave of space technology startups are mushrooming in India, catching the attention of investors keen to join the space race.

Bengaluru-based Bellatrix Aerospace, which wants to propel satellites into orbit using electric and non-toxic chemical thrusters, has raised $3 million from a group of investors, co-founder Yashas Karanam told Reuters. Venture capital fund IDFC Parampara is leading Bellatrix’s pre-Series A round. The family office of Suman Kant Munjal, who belongs to the billionaire family that controls Indian motorcycle maker Hero MotoCorp, and Deepika Padukone, one of Bollywood’s biggest stars, are two of the other seven investors.

Meanwhile, Mumbai-based Kawa Space, which designs and operates earth observation satellites, has closed a seed round of an undisclosed amount, one of its investors, Vishesh Rajaram, managing partner at Speciale Invest, told Reuters.

Bellatrix and Kawa are two of over a dozen Indian startups developing satellites, rockets and related support systems which can power space missions serving a range of industries. Their fundraising represents a big leap in private space investments in India, a leading space power but where the government has enjoyed a near-monopoly for decades.

Space technology is red hot thanks partly to activity happening 2,000 km above the earth in the low-earth orbit, much closer and easier to reach than the geostationary orbit where many communications satellites operate. Here, small and cheaper satellites are snappingimages used in everything from crop-monitoring and geology to defence and urban planning, bringing down costs and increasing the frequency of images. In the past five years, some two dozen Indian startups have grown into unicorns – companies with over $1 billion valuations.

India’s space technology firms are part of a new breed of startups, and investors are paying attention, given the surging global interest in everything from space exploration to space vacations. Satellite launches planned in the coming years worldwide give investors confidence in such companies, said Bellatrix investor Jatin Desai, whose Parampara Capital collaborated with lender IDFC to form IDFC Parampara. “That gives us a large potential market,” he said.

Over 17,000 small satellites could be launched between 2018 and 2030, a consulting firm estimates. “There is money to be made… These are exciting times for lots of entrepreneurs,” said Rajaram, whose Speciale Invest has bet on three space startups in India.

REUTERS