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

SIDBI Venture Capital (SVCL), the Small Industries Development Bank of India’s venture capital subsidiary, has made the first close of ₹1,005 crore for its spacetech-focused Antariksh Venture Capital Fund (AVCF). The Indian National Space Promotion and Authorisation Centre (IN-SPACe) is the anchor of the fund, putting in ₹1,000 crore as part of the first close.

AVCF is envisioned as a ₹1,600 crore fund and will invest in both early-stage and growth-stage spacetech companies. These investments will be for 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 10-year tenure.

"The Antariksh Venture Capital Fund, India’s largest spacetech-focused fund and among the largest globally, will play an instrumental role in advancing national space capability and competitiveness,” Arup Kumar, managing director and chief executive at SVCL said in a prepared statement.

SVCL will begin deploying from this fund, while also seeking additional funding from both domestic and international investors, as well as institutional and sovereign investors, under the green-shoe option.

India has seen a host of spacetech and aerospace companies crop up over the past few years, and the government aims for India’s space industry to generate $44 billion of annual revenue 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 only seen funding from specialised venture capital funds, is seeing a shift, with generalist funds entering the mix. Their increased involvement comes at a time when the US and China are in a tussle for tech dominance, with India trying to position itself as a meaningful player.

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

Peak XV has already made some investments in the sector this year, which have not been publicly disclosed. Accel has signed four deals so far, ranging from aerospace to advanced manufacturing across seed, Series A and Series B rounds.