Indian space-tech startups attract global orders and foreign capital

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Indian space-tech startups’ overseas success

Highlights

Indian space-tech startups are seeing growing global demand, export orders and capital from the U.S., Europe, Southeast Asia and West Asia.
Pixxel raised $100 million in funding in September, led by Temasek and Seraphim, in the largest deal to date.
Companies such as Digantara, Skyroot and Agnikul have established bases in overseas markets, but large funding rounds and launch capacity remain challenges.

This article was translated from the original. Read the original version by our correspondent here.

Global demand, capital and the path to expansion

Forbes India reports that Indian space-tech startups are receiving growing inquiries, export orders and foreign investment from the U.S., Europe, Southeast Asia and West Asia, accelerating their international expansion. In October, Skyroot said that 70 to 80 percent of demand for its small-satellite launch vehicle, Vikram, is global; the company has partnered with Brazil’s Concert Technologies to jointly develop a 100-kilogram low Earth orbit launch vehicle and has also signed a deployment agreement with U.S.-based Reflect Orbital for two dedicated launches of future spacecraft.

The inflow of foreign capital further reinforces this trend. Bengaluru-based Pixxel raised $100 million in funding in September, reportedly the sector’s largest deal to date, led by Temasek and Seraphim. Earlier, Canada’s Radical Ventures led its Series A, while in 2023 Google led Pixxel’s $36 million Series B, marking its first investment in Indian space tech. In 2021, Agnikul Cosmos raised $11 million in a round led by Mayfield India, the India arm of U.S.-based Mayfield.

Some companies are also establishing a physical presence in overseas markets. Digantara has set up a manufacturing and operations base in Denver, Colorado, for U.S. government and defense contracts, while another overseas hub is in Singapore. Pixxel has a subsidiary in El Segundo, California, which its CEO Awais Ahmed considers crucial to winning contracts from NASA and the National Reconnaissance Office. The company is now preparing to expand its presence in Europe, West Asia and Southeast Asia as well.

Technological advantages are also a major driver of this global interest. In September, GalaxEye secured a U.S. patent for its OptoSAR, a proprietary dual-sensor technology that combines optical and radar observation. Bellatrix is developing electric thrusters for very low Earth orbit that can use atmospheric nitrogen as propellant, while Dhruva Space is working with international partners including ICEYE, Kinéis, Thales Alenia Space, Infostellar and Esper Satellites.

The test of revenue, market share and execution

Demand patterns within the industry are not uniform. According to IN-SPACe Chairman Pawan Goenka, Indian companies are actively attracting customers overseas and will become competitive within two to three years. IN-SPACe data show that half of India’s top 10 space-tech companies still depend more heavily on the domestic market, while others such as Dhruva Space, HEX20, Agnikul and Skyroot derive a significant share of their business from abroad.

Companies selling launch vehicles, propulsion systems and engineering services naturally appear more global, while data- or analytics-focused firms that depend on the Indian government and defense customers remain tied to the domestic market. Even so, international opportunities exist in the data business as well, provided a company can build a local presence and differentiated technology. Pixxel argues that competing on low cost alone is not enough; the technology must offer something others do not.

The examples of Digantara, Skyroot, Agnikul, Bellatrix and GalaxEye show that entering overseas markets often requires a market-specific strategy. Digantara first targeted smaller markets in Asia-Pacific before gaining access to U.S. government contracts. Agnikul has signed several memoranda of understanding with European companies and plans to fly its reusable Agnibaan rocket in 2027. Bellatrix sees Asia as an opportunity because Western suppliers have made limited inroads there, while GalaxEye is selling its products through channel partners rather than directly to governments.

However, several obstacles remain. According to founders, capital for large funding rounds is still limited, most major growth capital comes from abroad, launch capacity is uncertain, and some critical components, such as advanced semiconductors, are not yet sufficiently available in India. In Europe, ownership rules, funding through national agencies and strict labor laws make entry difficult, while U.S. national security work requires independent entities run by local citizens.

Ultimately, the next phase for Indian space-tech companies is more about business execution than technological achievement. Seraphim CEO Mark Boggett says the next five to 10 years could be decisive, but capital will continue to flow only to businesses that can turn strong technology into large-scale, repeatable revenue. Pixxel’s Ahmed says Indian companies need to grow with an international outlook from day one, while Bellatrix’s Yashas Karanam warns that some companies race ahead in fundraising, blinded by confidence, while execution falls behind.

Our previous report focused on India’s semiconductor strategy and strengthening its role in global value chains, where the government said it aimed to reduce external dependence by prioritizing manufacturing, design and material-supply capabilities. The article also noted that activities such as 2nm/3nm chip design are developing the country’s design capabilities, while the next phase of the program is increasing investment in materials and inputs—critical for technological sovereignty and supply-chain resilience.

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