India’s SpaceTech push enters funding phase as T-Hub, IN-SPACe convene investors

India’s SpaceTech ecosystem is moving from policy momentum to capital formation, with investors and startups increasingly aligning around the next phase of growth in the sector.

T-Hub, in collaboration with IN-SPACe, on April 1 hosted the InveSt Space Hyderabad edition, bringing together founders, venture capital firms, policymakers and international stakeholders to accelerate investment flows into the space economy.

The development comes at a time when India’s space sector is witnessing rapid expansion, with the market projected to grow from about $8.4 billion currently to nearly $44 billion by 2033, driven by increased private sector participation and policy support.

Policy momentum meets capital gap

Over the past few years, regulatory reforms and the establishment of IN-SPACe as a single-window authorisation body have opened the sector to private players, with more than 250 entities already approved to participate across launch systems, satellite manufacturing, and downstream applications.

However, despite this growing pipeline of startups, access to capital remains a key bottleneck.

The InveSt Space initiative is aimed at bridging this gap by connecting early- and growth-stage companies with investors actively building exposure to deep-tech and space-focused opportunities.

Full value chain participation

More than 30 startups participated in the event, spanning the entire space value chain — from launch systems and spacecraft manufacturing to ground segment technologies, downstream applications, and emerging in-orbit services.

Key ecosystem players included founders from companies such as Skyroot Aerospace, Dhruva Space, XDLINX Space Labs and TakeMe2Space, alongside investors from venture capital firms including Lightspeed India, Chiratae Ventures, Kalaari Capital and Indian Angel Network.

The presence of international delegations further reflects growing global interest in India’s private space ecosystem.

Hyderabad emerges as SpaceTech hub

Hyderabad is increasingly positioning itself as a key hub for SpaceTech innovation, with a significant number of startups in the sector headquartered in the city.

Industry participants noted that access to infrastructure, talent and policy support has helped the region emerge as a focal point for space-related ventures.

As India looks to scale its space economy, the focus is now shifting from enabling participation to ensuring sustained funding and commercialisation.