SIDBI Venture Capital Limited has been selected as the fund manager for the government's Rs 1,000 crore venture capital fund to support private sector firms in space technology.
The Indian National Space Promotion and Authorization Centre (IN-SPACe) made the announcement on Friday.
The fund will disburse its funds over a five-year period, starting with Rs 150 crore in fiscal year 2025–2026 and going up to Rs 250 crore in each of the next three fiscal years and Rs 100 crore in fiscal year 2029–2030.
A government announcement states that, depending on the company's stage, growth trajectory, and possible influence on national space capabilities, the indicative range of investment is between Rs 10 crore and Rs 60 crore.
According to the government, one of the fund's goals is to counter the "trend of Indian companies domiciling abroad".
"The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund start-ups in this high-tech sector," according to the statement.
The fund will concentrate on early-stage investments and expect firms to be able to raise "further private equity investments". However, late-stage companies will receive investments ranging from Rs 30 crore to Rs 60 crore. The early-stage firms will receive half of that range.
India intends to increase the estimated value of its domestic "space economy" from $8.4 billion to $44 billion by 2033.
