The Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the SIDBI Venture Capital Ltd (SVCL) have signed an agreement to operationalise the ₹1,000 crore Venture Capital Fund for the Indian space sector.

The Central government had approved the establishment of the ₹1,000 crore Venture Capital Fund for the Indian space sector in October 2024, and Small Industries Development Bank of India (SIDBI) was appointed as the Fund Manager in March 2025. The deployment period of the fund is planned to be up to five years from the actual date of the start of the fund operations. The average deployment amount could be ₹50-250 crore per year, depending on the investment opportunities and fund requirements.

The signing marks the formal beginning of the Fund’s investment activities following its approval by the Securities and Exchange Board of India (SEBI) on 31 October 2025.

The Fund is designed to provide critical early-stage and growth capital to startups working across launch technologies, satellites, payload systems, in-space services, earth observation, communication platforms and downstream applications, enabling them to scale and contribute to national space capability.

“This Fund is a major enabler for India’s private space sector. It will support startups with the financial runway needed to test ideas, build indigenous technologies, and scale confidently. Today’s signing strengthens our commitment to building a vibrant ecosystem where innovation flourishes and Indian enterprises become global leaders in space technology. We look forward to working closely with SIDBI as we implement this important national initiative”, Lochan Sehra, Joint Secretary, IN-SPACe, said.

The operationalisation of this fund represents a significant step toward building a strong, innovation-driven, and future-ready space industry for India.

“SIDBI is committed to empowering India’s deep-tech and frontier technology entrepreneurs, and the space sector represents one of the most promising frontiers of national growth. This dedicated Fund will give young companies the capital and confidence to innovate boldly, commercialise breakthroughs and contribute to India’s emergence as a major space power. We are honoured to partner with IN-SPACe and the Govt of India in advancing this mission”, Arup Kumar, Managing Director and CEO, SIDBI Venture Capital Limited (SVCL), a 100% subsidiary of SIDBI.

Pawan Goenka, Chairman, IN-SPACe, conveyed his support for the activation of the Fund and its role in catalysing India’s private space ecosystem.