On November 10, 2025, the Indian National Space Promotion and Authorisation Centre (IN-SPACe), under Department of Space (DoS), signed a contribution agreement with Small Industries Development Bank of India Venture Capital Limited (SVCL), a wholly owned subsidiary of Small Industries Development Bank of India (SIDBI), in Ahmedabad, Gujarat.
- The agreement aims to launch IN-SPACe-SIDBI Space Venture Fund, a Rs.1000-crore Venture Capital (VC) fund for India’s spacetech startups and enterprises.
Exam Hints:
- What? Contribution Agreement signed
- Entities: IN-SPACe & SVCL
- Signatories: Lochan Sehra (IN-SPACe), Arup Kumar (SVCL)
- Where? Ahmedabad (Gujarat)
- Name of Fund: IN-SPACe-SIDBI Space Venture Fund
- Value: Rs.1000 crores
- Deployment Period: Five Years (2025-2030)
- Investment per Startup: Rs.10–60 crore; target ~40 startups
About Contribution Agreement:
Signatories: The agreement was signed by Lochan Sehra, Joint Secretary, IN-SPACe, and Arup Kumar, Managing Director (MD) & Chief Executive Officer (CEO), SVCL.
Launch: The signing marks the formal beginning of the fund’s investment activities following its approval by the Securities and Exchange Board of India (SEBI).
About IN-SPACe-SIDBI Space Venture Fund:
Approval: The fund was approved by the Union Cabinet headed by Prime Minister(PM) Narendra Modi in October 2024 and SVCL was appointed as the Fund Manager.
Objectives: The key objectives are to strengthen India’s space economy, prevent the relocation of Indian space firms abroad, and catalyse private and foreign investment.
Fund Deployment: IN-SPACe-SIDBI Space Venture Fund, India’s first government-backed VC fund, will be deployed over five years from 2025 to 2030, with an investment ranging between Rs.10 crores and Rs.60 crores per company, with an aim to support about 40 startups across different stages of growth.
Funding Schedule: The annual disbursement is expected to start with Rs.150 crores in Financial Year 2025-26 (FY26) and rise to Rs.250 crores in the following years, including FY27, FY28, FY29, and Rs.100 crores in FY30.
Role of Entities: As part of the agreement, IN-SPACe will provide policy direction, ensuring alignment with national priorities and responsible use of funds.
- SVCL will professionally manage the fund, conducting due diligence, selecting investment companies, and ensuring returns through exits or follow-on funding rounds.
Target Areas: The fund will target the entire space value chain, including:
- Upstream activities such as launch vehicles, propulsion systems, satellite fabrication, and component manufacturing
- Mainstream, encompassing ground systems, satellite integration, and payload technologies
- Downstream, applications such as communication, navigation, geospatial analytics, and Earth-observation services.
Alignment: The initiative aligns with the Government of India (GoI)’s vision of Indian Space Policy 2023, which opened the space sector to private players and positioned IN-SPACe as the nodal body for authorizing and promoting private participation.
About Venture Capital Fund:
Fund: It is a pool of money used to invest in start-ups and high-growth companies with strong potential but higher risk. It provides equity funding, where the investors buy stakes, to help businesses grow and earn returns when they succeed.
Role: VC funds are key drivers in sectors such as technology, biotech, clean energy, and space.
About Indian National Space Promotion and Authorisation Centre (IN-SPACe):
Chairman – Dr. Pawan Kumar Goenka
Headquarters – Ahmedabad, Gujarat
Established – 2020
