India's private SpaceTech firms raise $871 million across 241 funding rounds; Skyroot's Vikram-1 marks sector milestone: Tracxn

India's private SpaceTech ecosystem has raised $871 million across 241 funding rounds through July 2026, fuelled by regulatory reforms, growing investor interest and the successful launch of the country's first privately developed orbital launch vehicle, according to a report by market intelligence platform Tracxn. 

The report said the ecosystem comprises 285 companies, of which 274 are active and 72 have secured institutional equity funding. These firms operate across launch vehicles, satellite manufacturing, propulsion systems, space situational awareness, earth observation and downstream analytics. 

According to Tracxn, policy reforms that opened India's space sector to private participation in 2020 have played a pivotal role in driving institutional investment and fostering the emergence of India's first SpaceTech unicorn as well as its first privately developed orbital launch vehicle. 

Skyroot's Vikram-1 reaches orbit 

A key milestone for the sector came on July 18, 2026, when Skyroot Aerospace's Vikram-1 successfully reached a 450-km low Earth orbit, deploying four payloads, including technology demonstrations from Grahaa Space, Cosmoserve, DCubed and Skyroot's own SCOPE satellite. 

The mission made India the third country after the US and China to achieve a privately developed orbital launch capability. 

The report noted that India achieved its first private orbital launch within six years of opening the sector to private players. Skyroot plans another test flight later this year before beginning commercial launch operations in 2027. 

Funding hits record high 

Funding into India's SpaceTech startups has grown sharply over the past few years, rising from $43 million across 12 rounds in 2021 to a record $200 million across 53 rounds in 2025. Investment momentum has remained strong in 2026. 

Five major deals—Skyroot Aerospace's $50 million Series C, Digantara's $50 million Series B, EtherealX's $21 million Series A, Bellatrix Aerospace's $20 million Series A, and AgniKul Cosmos' $17 million Series C—together accounted for $158 million, representing more than half of the capital raised across 2025 and 2026. 

Early-stage funding also expanded significantly, with seed-stage investments increasing from $7 million in 2022 to $62 million in 2025. Meanwhile, late-stage funding emerged for the first time, reaching $17 million in 2025 and $53 million in 2026 so far. 

The investor base has also diversified beyond domestic venture capital firms and angel investors to include sovereign wealth funds and global institutional investors. 

Bengaluru dominates funding 

The report found that the top 10 funded SpaceTech startups have collectively raised more than $548 million. 

Skyroot Aerospace leads the pack with $150 million in total funding, followed by Pixxel ($96 million), AgniKul Cosmos ($76 million), Digantara ($67 million) and Bellatrix Aerospace ($34 million). Skyroot became India's first SpaceTech unicorn after raising $50 million in its Series C funding round in May 2026. 

Among cities, Bengaluru remains the country's SpaceTech hub, attracting $495 million across 106 funding rounds. Hyderabad follows with $205 million, while Chennai has raised $80 million. Together, the three cities account for the bulk of equity funding in India's private SpaceTech ecosystem.