Agnikul Cosmos Secures INR 67 Cr Funding to Boost Space Launch Capabilities

Agnikul Cosmos, an IIT-Madras alumni founded startup from 2017, has successfully raised INR 67 crore in its latest funding round, marking a significant capital infusion after more than two years. This financing comprises INR 60 crore in equity, issued as Compulsorily Convertible Preference Shares (CCPS) to Advenza Global and Atharva Green Ecotech LLP, and INR 7 crore in debt, provided as Compulsorily Convertible Debentures (CCDs) by Pratithi Investments. This capital is expected to bolster Agnikul's efforts in scaling manufacturing, expanding test facilities, and preparing for upcoming commercial space launches.

The company is focused on making space access more flexible and affordable through its small-lift launch vehicles. Its flagship rocket, Agnibaan, is designed to carry payloads up to 300 kg to orbits around 700 km. A key innovation is the Agnilet engine, which Agnikul claims is the world's first fully 3D-printed, single-piece semi-cryogenic rocket engine. A semi-cryogenic engine uses propellants where at least one is stored at very low temperatures (like liquid oxygen) and the other is not (like kerosene or methane).

Agnikul has also established operational capabilities at Sriharikota, including a private launchpad and mission control center, positioning itself among a select few Indian private entities with such facilities. The company is preparing for its Agnibaan SOrTeD mission, a technological demonstrator preceding its commercial operations.

Impact: This funding round highlights continued strong investor interest in India's burgeoning spacetech sector, which has seen significant growth since deregulation in 2020. It supports Agnikul's development of advanced space launch technology, potentially enhancing India's capabilities in the global space economy. The investment is a positive signal for deeptech innovation and the overall startup ecosystem in India. Rating: 7/10.

Difficult Terms: CCPS (Compulsorily Convertible Preference Shares): These are preference shares that automatically convert into equity shares of the company at a predetermined time or upon specific events, rather than being redeemed. CCDs (Compulsorily Convertible Debentures): These are debt instruments that are converted into equity shares of the issuing company after a specified period or upon the occurrence of certain conditions. Semi-cryogenic engine: A type of rocket engine that uses propellants, where at least one component is cryogenic (stored at extremely low temperatures) and the other is not. For example, liquid oxygen (cryogenic) combined with kerosene (non-cryogenic). 3D-printed rocket engine: A rocket engine where components are manufactured using additive manufacturing technology, building the engine layer by layer from digital designs. This allows for complex geometries and potential improvements in efficiency and production. Launch vehicles: Rockets or spacecraft designed to carry payloads (like satellites) into space.