Indian space technology startup Agnikul has successfully raised $26.7 million in Series B funding, equivalent to Rs. 200 Crore, marking a significant milestone as it gears up to initiate commercial launches with its adaptable satellite rocket. The funding round saw enthusiastic participation from investors, including Artha Venture Fund, Artha Select Fund, Celesta Capital, and Rocketship. VC, as well as existing backers such as Mayfield India, Speciale Invest, and Pi Ventures, among others. This notable achievement stands as Agnikul’s most extensive fundraising initiative to date, bringing the total capital raised thus far to an impressive $40 million.
Agnikul
Agnikul, founded in 2017 by Srinath Ravichandran, Moin SPM, SR Chakravarthy, and an IIT Madras professor, marked a pioneering milestone by becoming the first Indian private space enterprise to sign an agreement with ISRO in December 2020. This collaboration prompted the startup to embark on the development of its launch service, targeting satellites weighing up to 100 kilograms, using the customizable Agnibaan rocket with a range extending to a 700-kilometer Earth orbit.
Agnibaan’s unique configuration, tailored according to customer specifications, necessitates the use of cutting-edge technologies like 3D printing and additive manufacturing. Last year, Agnikul inaugurated a dedicated facility for end-to-end 3D printing of rocket engines, highlighting the company’s commitment to innovation. The integration process of Agnibaan SOrTeD (Suborbital Technological Demonstrator) commenced in August, coinciding with the launch of India’s inaugural private launchpad and mission control center at the Satish Dhawan Space Center, Sriharikota.
Small Launch Vehicles
The rise in demand for smaller rockets has gained traction among both major tech conglomerates and emerging startups, as they seek to deploy small satellites weighing up to 500 kg to enhance technological capabilities and extend internet connectivity to remote areas. This growing demand has emphasized the necessity for smaller rockets, a fact underscored by the European Commission. Presently, small satellites are typically launched as secondary payloads alongside larger satellites, creating a discernible demand-supply gap for specific solutions.
Agnikul aims to complement the Indian Space Research Organisation (ISRO) by focusing on handling launches within the sub-300 kg payload segment, effectively bridging a gap that remains unaddressed by ISRO. Ravichandran, CEO of Agnikul, emphasized the goal of customizing launch vehicles to accommodate diverse payloads and reach designated orbits without compromising cost-efficiency. Despite facing formidable competition on the global stage, Agnikul’s ability to tailor their vehicle to suit payload requirements presents a cost-effective advantage.
While Agnikul has yet to commence commercial launches and monetization, the startup’s technological prowess has garnered significant attention. Ravichandran shared the positive response received from launch companies after signing memorandums of understanding with select European and Japanese firms. The startup is poised to conduct its maiden flight test before the conclusion of 2023.
With a current workforce of approximately 225 employees, Agnikul envisions expanding its operations and hiring additional talent to accommodate the growing demand. The startup aspires to surpass its initial launches and diversify its offerings by developing multiple variants of Agnibaan, with the ultimate goal of achieving monthly launch frequencies.
Agnikul, often hailed as India’s response to SpaceX, is primed to revolutionize not only the domestic but also the global space industry, as noted by Sailesh Ramakrishnan, Managing Partner at Rocketship.vc.
India’s Space Sector
India’s space sector has witnessed a burgeoning rise in the number of space tech startups, surpassing 100 in 2022, with investments soaring to a remarkable $250 million. Encouraged by ISRO and IN-SPACe (Indian National Space Promotion and Authorization Centre), this surge in funding reflects the nation’s increasing support for space startups. The introduction of the Indian Space Policy in August this year, with ISRO facilitating greater private sector involvement, has further propelled this momentum.
Notable successful missions such as Chandrayaan-3 and Aditya-L1 undertaken by ISRO underline the promising growth potential of India’s space sector, which is anticipated to soar from $8.4 billion to an impressive $44 billion in the coming decade, as outlined in the white paper released by IN-SPACe, emphasizing startups as pivotal players in this trajectory of growth.
