The Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Small Industries Development Bank of India Venture Capital Ltd (SIDBI Venture Capital Fund) have officially signed a Contribution Agreement to operationalise the ₹1,000 crore Venture Capital Fund for India’s space sector. This marks the formal start of the Fund’s investment operations following its approval by the Securities and Exchange Board of India (SEBI) on 31 October 2025.
The agreement was signed between Shri Lochan Sehra, IAS, Joint Secretary, IN-SPACe, and Shri Arup Kumar, Managing Director and CEO, SIDBI Venture Capital Limited (SVCL), a wholly owned subsidiary of SIDBI. The signing was also attended by Shri Ratnesh Kumar, Deputy Director (F&A), and Shri Rajesh Kohli, Assistant Director (F&A), from IN-SPACe, who played key roles in shaping the Fund’s financial and operational framework. Dr Pawan Goenka, Chairman, IN-SPACe, joined the event virtually and extended his support for the Fund’s activation and its role in strengthening India’s private space ecosystem.
The Union Cabinet, led by Hon’ble Prime Minister Shri Narendra Modi, had approved the creation of the ₹1,000 crore Venture Capital Fund in October 2024. In March 2025, SIDBI Venture Capital was appointed as the Fund Manager, drawing on its experience in supporting early-stage and technology-driven enterprises across the country.
The Fund aims to provide early-stage and growth capital to startups working in areas such as launch technologies, satellites, payload systems, in-space services, earth observation, communication platforms, and downstream applications. This will enable these enterprises to scale operations and contribute to the nation’s space capability.
Shri Lochan Sehra said, “This Fund is a major enabler for India’s private space sector. It will support startups with the financial runway needed to test ideas, build indigenous technologies, and scale confidently. Today’s signing strengthens our commitment to building a vibrant ecosystem where innovation flourishes and Indian enterprises become global leaders in space technology. We look forward to working closely with SIDBI as we implement this important national initiative.”
Shri Arup Kumar added, “SIDBI is committed to empowering India’s deep-tech and frontier technology entrepreneurs, and the space sector represents one of the most promising frontiers of national growth. This dedicated Fund will give young companies the capital and confidence to innovate boldly, commercialise breakthroughs and contribute to India’s emergence as a major space power. We are honoured to partner with IN-SPACe and the Govt of India in advancing this mission.”
IN-SPACe continues to advance India’s vision of a self-reliant and globally competitive space sector by encouraging private participation, nurturing startups, and fostering technological innovation. The operationalisation of this Fund marks a key step in building a strong, innovation-led, and future-ready space industry for India.
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