Space startups eye revenue build-up, investors bullish

Investors see funding opportunities with high returns to grow as cos start pulling revenue

- Shouvik Das

For now, the sector has a tall revenue target to meet.

(ISTOCKPHOTO)

India's top space startups-Digantara, Skyroot and Agnikul Cosmos-have received a thumbs-up from investors as they look to scale up revenue over the next 18-24 months, marking a crucial milestone five years after New Delhi opened up space for private participation.

On Tuesday, Bengaluru-based Digantara raised $50 million in its series-B funding round, which the company will use to build its own manufacturing lines for satellites and optical communications technologies, and double its research and development team through 2026.

Anirudh Sharma, chief executive of Digantara, told Mint that at the heart of its new fund-raise and expansion plans is the prospect of generating significant revenue, starting 2026.

"By FY27, we're eyeing annual revenue of $30 million, 80% of which is being driven from government-sector clients in India itself," Sharma said, adding that the current funding round provides breathing room of two years, during which the company will invest in research for building solutions for the defence sector. Digantara had earlier raised a total of $14.5 million in funding over three rounds, starting July 2021.