The development of private space technologies in India is often highlighted in the press through success stories; however, behind every successful rocket launch or satellite deployment lies a complex reality characterized by hundreds of investor rejections, serious supply chain issues, and the constant threat of orbital failure.
During the 17th TechSparks event by YourStory, Shradha Sharma, founder and CEO of Srinath Ravichandran, AgniKul Cosmos, co-founder and CEO of Suyash Singh, and GalaxEye shared their practical experience in building aerospace ventures in an emerging market.
When AgniKul began operations in 2017, the Indian regulatory framework for private space technologies was still taking shape, and local venture capital for deep tech was virtually non-existent. Ravichandran faced 275 investor rejections before securing initial funding. Singh encountered similar difficulties at GalaxEye, receiving around 100 rejections.
To survive in the early stages, they had to break down ambitious goals into smaller, manageable steps instead of relying on rigid long-term plans. Ravichandran noted: 'The first thing you have to do is start, no matter what... break it down into smaller stages and start doing something... patience was the most important thing for me.'
This pragmatic approach also changed the business models of both founders. In Western countries, traditional aerospace programs often require half a billion dollars in capital before generating revenue. In contrast, AgniKul focused on a per-kilogram transport model for small satellites, effectively acting as an orbital cargo carrier, aiming for commercial viability at the $50 to $60 million level.
Explaining this lean approach, Ravichandran emphasized: 'It's more like you give me 500 million dollars, and then I start paying you back. That's not how India works. That's not how I was built.'
Following a successful test launch in May 2024 using 3D-printed engines and a mobile launchpad, AgniKul is preparing for customer flights in orbit while testing rocket stage reusability for safe equipment return to Earth to reduce launch costs.
While launch providers handle transportation, satellite manufacturers face different operational challenges. GalaxEye developed OptoSAR—a patented, world-first technology that combines optical cameras with synthetic aperture radar for observing Earth through clouds and darkness.
However, space hardware is extremely demanding. Just 30 days after the launch of India's largest recognized private liquid satellite, GalaxEye lost contact with the spacecraft.
Commenting on this failure, Singh stressed: 'Whatever path we take, dealing with such failures will be very, very important for the space industry.'
Despite these risks, market demand is growing rapidly. The rise in geopolitical conflicts worldwide has made Earth observation from space indispensable.
Singh explained: 'Geopolitics is heating up, and space observation is not an option. It is a necessity. Therefore, I think defense is one of the biggest markets.'
Nevertheless, scaling up space ventures in India reveals persistent structural friction. Growth capital and seed funding of $100 million or more remain scarce as institutional investors slowly adapt to the return profiles of deep tech, where significant initial R&D precedes long-term profit.
Supply chains also create difficulties. Startups often face high minimum order quantities, meaning the smallest number of individual components a manufacturer agrees to supply, forcing founders to rely on European suppliers for specialized light sensors when domestic alternatives are too heavy.
Despite these hurdles, both founders remain optimistic about human capital. Strict foreign visa regulations in Western aerospace sectors encourage leading Indian engineers to stay or return home. Combined with employee stock option schemes that offer real wealth creation, deep tech in India is gaining prestige, contributing to the maturity of the country's private space technology ecosystem.
