Agnikul Raises $26.7 Million for Maiden Rocket Launch; Spacetech's Meteoric Rise Continues

In a significant development in the space tech sector, Agnikul Cosmos, a rocket startup incubated at IIT Madras, has successfully secured $26.7 million in Series B funding. The latest round witnessed participation from notable investors, including Celesta Capital Rocketship.VC, Artha Venture Fund, and Artha Select Fund, alongside existing backers such as Pi Ventures, Speciale Invest, and Mayfield India.

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In a significant development in the space tech sector, Agnikul Cosmos, a rocket startup incubated at IIT Madras, has successfully secured $26.7 million in Series B funding. The latest round witnessed participation from notable investors, including Celesta Capital Rocketship.VC, Artha Venture Fund, and Artha Select Fund, alongside existing backers such as Pi Ventures, Speciale Invest, and Mayfield India.

Agnikul is making strides toward its much-anticipated maiden launch of "Agnibaan," a privately-manufactured small satellite rocket. This innovative rocket is equipped with the cutting-edge "Agnilet," a single-piece 3D printed engine, enabling it to transport payloads of up to 100 kg to low Earth orbits at altitudes of up to 700 km.

To realize this ambitious project, Agnikul took a monumental step last November by establishing India's first private space vehicle launch pad, located in the vicinity of the Indian Space Research Organisation (ISRO) in Sriharikota, Andhra Pradesh. Since August of the current year, the startup has been preparing its "Agnibaan SOrTeD" (SubOrbital Technological Demonstrator) for launch from the Satish Dhawan Space Centre (SDSC).

The remarkable achievements of Agnikul extend beyond the launchpad, including the establishment of India's first private Mission Control Center and a rocket engine factory. Srinath Ravichandran, Co-founder and CEO of Agnikul highlighted, "We have made significant progress in various aspects, from technology to manufacturing facilities. With the infusion of new capital, we will continue advancing our technology and building essential facilities to ensure the reliability of our products for our clients."

Agnikul is poised to follow in the footsteps of Skyroot Aerospace, which launched India's first privately manufactured rocket last November, while Pixxel, Dhruva Space, and Digantara deployed their test satellites aboard ISRO's PSLVs. The Chennai-based startup has managed to secure approximately $40 million in funding since its inception in 2017, making it one of India's most well-funded spacetech startups.

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The space tech sector in India has gained momentum, driven by favorable policies and significant venture capital investment. In 2022, there were over 100 space startups in India, with cumulative funding nearing $250 million, with notable contributions such as the $50 million investment led by GIC in Skyroot Aerospace.

This surge in funding began in mid-2020 when ISRO and IN-SPACe (Indian National Space Promotion and Authorisation Centre) started encouraging spacetech startups. In August of the current year, the Indian Space Policy was unveiled, paving the way for increased involvement from private entities in a sector traditionally dominated by ISRO.

Arun Kumar, Managing Partner at Celesta Capital, commented on the significance of Agnikul's mission, stating, "Agnikul's pursuit of innovative space solutions aligns with our investment focus on India's leading-edge deep tech sectors." He further emphasized the collaboration among the Indian Space Research Organization, regulatory bodies, and entrepreneurs in driving advancements within India's dynamic space-tech ecosystem.

India's space sector exhibits vast potential, with a white paper from IN-SPACe projecting its growth from the current $8.4 billion to $44 billion over the next decade. Startups are expected to play a pivotal role in fostering innovation within the sector.