Sidbi Venture Capital Launches India's Largest Spacetech Fund at Rs 1,600 Crore with IN-SPACe Anchor Investment

Sidbi Venture Capital Ltd (SVCL) has achieved the first close of its Rs 1,600-crore Antariksh Venture Capital Fund, successfully raising Rs 1,005 crore. A major boost came from the Indian National Space Promotion and Authorisation Centre (IN-SPACe), which committed Rs 1,000 crore to the fund. This makes the Antariksh Venture Capital Fund India’s largest dedicated investment vehicle for the spacetech sector, operating as a Category II Alternative Investment Fund (AIF) with a 10-year tenure.

The fund's investment mandate spans early and growth-stage Indian companies involved in critical areas such as launch systems, satellite development, in-space operations, ground systems, earth observation, communications, and downstream applications. This initiative, SVCL’s 12th venture fund, directly supports India's ambitious goal of developing a $44-billion space economy by 2033 and aligns with India’s Space Vision 2047.

SVCL, a wholly owned subsidiary of Sidbi, has a history of backing significant companies, including past investments in unicorns like BillDesk and Data Patterns. The launch of this spacetech-focused fund aims to enhance national space capability and competitiveness, complementing Sidbi's broader mission to support MSMEs and the innovation ecosystem.

Impact

This news significantly boosts the Indian spacetech sector by providing substantial dedicated funding. It is expected to accelerate innovation, support the growth of early and growth-stage startups in areas like satellite technology, launch systems, and earth observation. This initiative aligns with India's ambitious goals for its space economy, potentially leading to more significant players emerging and contributing to future economic growth and technological advancement. It could also pave the way for future listings of spacetech companies on Indian stock exchanges, impacting the broader market sentiment towards deep tech and innovation.

Rating: 8/10

Difficult Terms:

AIF (Alternative Investment Fund): A fund that pools capital from investors to make investments in various assets, excluding traditional securities like stocks and bonds. Category II AIFs typically invest in private equity, venture capital, or hedge funds.

IN-SPACe (Indian National Space Promotion and Authorisation Centre): A government body established to promote and regulate non-governmental entities in India's space sector, encouraging private sector participation.

Spacetech: Refers to companies and technologies related to space exploration, satellite development, launch services, space communication, earth observation, and related industries.

Green-shoe option: A provision in an investment fund's offering that allows it to sell more units than originally planned if there is high demand, enabling it to raise additional capital.

MSMEs (Micro, Small and Medium Enterprises): Businesses classified based on their investment in plant and machinery and annual turnover, playing a crucial role in India's economy.