The rise of private spacetech in India is frequently celebrated through triumphant headlines, but behind every successful rocket launch or satellite deployment lies a gritty reality defined by hundreds of investor rejections, acute supply chain bottlenecks, and the constant threat of orbital failure.
Speaking with Shradha Sharma, Founder and CEO, YourStory and The Bharat Project, at the 17th edition of YourStory’s flagship tech-startup event, TechSparks, Srinath Ravichandran, Co-founder and CEO of AgniKul Cosmos, and Suyash Singh, Co-founder and CEO of GalaxEye, shared practical insights into the complex task of building aerospace ventures in an emerging market.
When AgniKul started in 2017, the Indian regulatory framework for private space technology was still evolving, and local venture capital for deeptech was nearly non-existent. Ravichandran faced 275 investor rejections before securing initial backing. Singh encountered similar headwinds at GalaxEye, facing roughly 100 rejections. Their early survival required breaking down ambitious goals into manageable steps rather than relying on rigid long-term master plans.
“The first thing to do is to get started, one way or the other... break it down into smaller milestones and start doing something... patience building was the big thing for me at least,” Ravichandran said.
This pragmatic mindset also reshaped how both founders approached business models. In Western nations, legacy aerospace programmes often require half a billion dollars in capital before generating revenue. In contrast, AgniKul focused on a pay-per-kilogram transportation model for small satellites, effectively operating as a cargo carrier to orbit, aiming for commercial viability at the $50 to $60 million mark.
Explaining this frugal approach, Ravichandran noted, “It is more like you give me $500 million and then I will start giving you money back. That is not how India works. That is not how I am also built.”
Following a successful test launch in May 2024 using 3D-printed engines and a mobile launchpad, AgniKul is now preparing for orbital customer flights while testing rocket stage reusability, bringing hardware safely back to Earth to lower launch costs.
While launch providers handle transportation, satellite makers face distinct operational challenges. GalaxEye developed OptoSAR, a patented, world-first technology combining optical cameras with synthetic aperture radar to view the Earth through clouds and darkness.
However, hardware in space remains unforgiving. Just 30 days after launching India’s largest private liquid satellite to global praise, GalaxEye lost communication with the spacecraft.
Reflecting on the setback, Singh emphasised, “Whatever journey we are going through is dealing with those kinds of failures is also going to be very very important for the space industry.”
Despite such risks, market demand is expanding rapidly. Surging geopolitical conflicts across the globe have made space-based Earth observation indispensable.
“Geopolitics is hotter, and space based surveillance is not an option. It is mandatory. So I think defence is one of the largest markets,” Singh explained.
Yet, scaling space ventures in India reveals persistent structural friction. Growth-stage capital and funding checks of $100 million or more remains scarce as institutional investors slowly adapt to deeptech return profiles, where heavy upfront research and development precedes long-term gains.
Supply chains also present difficulties. Startups frequently encounter high minimum order quantities, the smallest number of custom components a manufacturer agrees to supply, forcing founders to rely on European vendors for specialised light sensors when domestic equivalents remain too heavy.
Despite these hurdles, both founders remain optimistic about human capital. Strict foreign visa regulations in Western aerospace sectors are encouraging top Indian engineers to stay or return home. Combined with employee stock option schemes that offer real wealth creation, deeptech in India is gaining prestige, pushing the nation’s private spacetech ecosystem to mature.
“I left technical engineering to go into finance... realised my heart is in engineering, so I came back... Equity is the only way to really get rich... with ESOPs people are starting careers,” Ravichandran noted.