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) today signed the Contribution Agreement to operationalise the ₹1,000 crore Venture Capital Fund for the Indian space sector. This signing marks the formal beginning of the Fund’s investment activities following its approval by the Securities and Exchange Board of India (SEBI) on 31 October 2025.
The agreement was signed today between Shri Lochan Sehra, IAS, Joint Secretary, IN-SPACe and Shri Arup Kumar, Managing Director and CEO, SIDBI Venture Capital Limited (SVCL, a 100% subsidiary of SIDBI). The signing was also attended by Shri Ratnesh Kumar, Deputy Director (F&A), IN-SPACe, and Shri Rajesh Kohli, Assistant Director (F&A), IN-SPACe, who represented the financial and operational leadership involved in structuring the Fund. Dr. Pawan Goenka, Chairman, IN-SPACe, addressed the ceremony virtually and conveyed his support for the activation of the Fund and its role in catalysing India’s private space ecosystem.
The Union Cabinet, chaired by Hon’ble Prime Minister Shri Narendra Modi, had approved the establishment of the ₹1,000 crore Venture Capital Fund for the Indian space sector in October 2024. In March 2025, SIDBI Venture Capital was appointed as the Fund Manager, drawing from its deep experience in nurturing early-stage and technology-led enterprises across India.
The Fund is designed to provide critical early-stage and growth capital to startups working across launch technologies, satellites, payload systems, in-space services, earth observation, communication platforms and downstream applications, enabling them to scale and contribute to national space capability.
Shri Lochan Sehra, IAS, Joint Secretary, IN-SPACe, 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, Managing Director and CEO, SVCL, “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 drive India’s vision of a self-reliant and globally competitive space sector by enabling private participation, supporting startups, and catalysing technological development. The operationalisation of this fund represents a significant step toward building a strong, innovation-driven, and future-ready space industry for India.