SIDBI Venture Capital announces ₹1,005 crore first close for spacetech fund

SIDBI Venture Capital (SVCL), the venture capital subsidiary of Small Industries Development Bank of India, has completed its first close ₹1,005 crore for space technology focused Antariksh Venture Capital Fund (AVCF). The Indian National Space Promotion and Authorization Center (IN-SPACe) is the anchor of the fund and ₹1,000 crore as part of the initial close.

AVCF is designed to: ₹1,600 crore fund and will invest in both early-stage and growth-stage space technology companies. These investments will be directed towards launch systems, satellites and payloads, as well as earth observation, communications and downstream applications. This is SVCL’s 12th fund and is registered as a category II alternative investment fund with a tenure of 10 years.

“Antariksh Venture Capital Fund, India’s largest space technology-focused fund and among the largest in the world, will play a significant role in enhancing national space capacity and competitiveness,” SVCL managing director and CEO Arup Kumar said in a prepared statement.

SVCL will start leveraging this funding and will also seek additional financing from both domestic and international investors as well as institutional and sovereign investors under the green shoe option.

A large number of space technology and aerospace companies have emerged in India in the last few years, and the government aims for India’s space industry to generate annual revenues of $44 billion by 2033. Notable examples include hyperspectral satellite imaging company Pixxel, aerospace manufacturer and commercial launch service provider AgniKul Cosmos, small satellite manufacturer Bellatrix Aerospace, and imaging satellite company GalaxEye.

Enter the generalists.

India’s deeptech ecosystem, which has traditionally received funding only from specialized venture capital funds, is undergoing a shift with mainstream funds also entering the mix. Their increased involvement comes at a time when the US and China are vying for tech dominance and India is trying to position itself as a meaningful player.

Funds such as Accel, Lightspeed, Elevation Capital and Peak XV Partners have tried to back such companies. As a result, larger capital pools are becoming available to deeptech startups.

Peak XV has already made some undisclosed investments in the sector this year. Accel has signed four deals so far, ranging from aerospace to advanced manufacturing to seed, Series A and Series B rounds.