Looking back at 2025: how our space economy startups evolved

As 2025 draws to a close, we at Speciale look back at it as a year of rapid evolution for many of our startups. Some quick thoughts below on some of them in the space economy sector.

India's space economy saw an unprecedented transformation in the year past, and our space-tech startups are leading the evolution of the landscape from a government-led initiative into one of the most vibrant sectors within the nation's deep tech ecosystem.

With ambitious targets to expand from $8.4 billion in 2022 to $44 billion by 2033, to capture 8 percent of the global space market, India's private space sector is rapidly establishing itself as a global powerhouse.

The government's commitment to space sector privatization has reached new heights in 2025. The space budget nearly tripled over the past decade, from Rs. 5,615 crore in 2013-14 to Rs. 13,416 crore in 2025-26. Most significantly, the Centre injected Rs. 211 crore under the Fund of Funds for Startups scheme specifically for space-tech innovation, while establishing a dedicated Rs. 1,000 crore venture capital fund exclusively for the space sector.

Prime Minister Modi's announcement that India now hosts over 350 space startups underscores the sector's strong growth. IN-SPACe has registered more than 1,200 startups and 6,400 users on its digital platform, processing 658 applications across satellite development and deep space exploration.

In our own portfolio, Agnikul Cosmos stands out as an India success story worldwide, having raised $50 million to date and achieving the world's first 3D-printed rocket engine launch in May 2024. Agnikul has ambitious plans to launch 50 rockets annually by 2028.

GalaxEye Space secured $10 million in Series A funding, led by MountTech Growth Fund, to advance its multi-sensor satellite technology. They have successfully tested their SyncFusion Imaging System aboard ISRO's POEM-4 platform and are preparing to launch their Drishti Mission satellite soon.

Inbound Aerospace, founded only this year, is an example of how Indian space tech startups are exploring new horizons. Inbound has raised $1 million in pre-seed funding to develop autonomous, reusable re-entry spacecraft for microgravity research and in-space manufacturing, addressing the upcoming ISS decommissioning in 2030.

Kawa Space, led by Thiruvananthapuram native Kris Nair, gained global recognition during Operation Sindoor by providing crucial satellite-based intelligence and damage assessment imagery, demonstrating the strategic value of India's private space capabilities.

InspeCity secured $5.6 million in seed funding led by Ashish Kacholia to develop satellite life-extension technologies, positioning itself as India's first fully vertically integrated platform for in-orbit servicing.

The sector is expanding to target opportunities across the space value chain. Skyroot Aerospace has partnered Axiom Space for co-developing launch systems, while Pixxel has raised $95 million for hyperspectral imaging satellites. State governments are establishing dedicated space manufacturing hubs, with Karnataka targeting 50 percent of India's national space market and Tamil Nadu approving its Space Industrial Policy 2025 with Rs. 10,000 crore investment targets.

India's space economy now generates a $2.54 multiplier effect for every dollar invested, making it 2.5 times more productive than the broader industry. The sector has created approximately 22,000 jobs and employed over 45,000 people as of 2023.

The transformation represents a fundamental shift from a supplier-based model to a full-spectrum innovation ecosystem. With over 300 space startups currently operational and strong government backing through IN-SPACe's facilitation, India's private space sector is poised to not only participate in the global space economy, but actively reshape it through cost-effective solutions, innovative technologies, and strategic international partnerships.