Space startups go bullish - Tryst with Moon & Mars
The popular and iconic science fiction series, Gene Roddenberry’s Star Trek, which debuted in 1966, represented futuristic advancements in science, technology and government. A revolutionary vision as future denizens of earth explored exciting new worlds in their numerous quests to the far stretches of Milky Way galaxy, which captured fantasy of people across the globe.
As humans continue to unravel the unknown frontiers of cosmos, how close are we today to Star Trek in reality?
With the successful injection of India's second moon spacecraft Chandrayaan-2 into earth orbit on July 22 this year by heavy lift rocket GSLV Mk III, the Indian Space Research organisation (ISRO) achieved yet another milestone. Having successfully completed its third orbit raising manoeuvre, using the onboard propulsion system, the Chandrayaan-2 is scheduled to reach the moon orbit by August 20 and land on September 7.
This is great news for India.
Over the years, the achievements of ISRO have attracted unparalleled global interest and attention. India is being recognised and acknowledged today as a global space power.
More and more investors and VCs in the country are forthcoming towards space startups and viewing them with renewed focus, given the surging global demand in this domain right from space explorations to space vacations.
There are a number of Indian startups today which are developing satellites to launch into space using cleaner fuels and building rockets including related support systems to power space missions and assist diverse industries. Building satellites and communication systems are gradually becoming hot lucrative options for startups today. Our mobile phones, TVs, office computers and the internet are all relying on satellites. Smaller and cheaper satellites, including pocket sized ones to cater to lower but the lucrative end of market are capturing images with increased frequency and reduced costs, to sift data for use across various applications such as crop-monitoring, weather, crop growth patterns, vehicle movement, fish migration, geology, defence and urban planning.
Recently Bengaluru-based Bellatrix Aerospace raised $3 million in its pre-Series A round, from a group of investors, led by Venture capital fund IDFC Parampara. The company develops orbital launch vehicles (rockets) and electric thrusters to propel satellites into orbit . Its patented electric propulsion systems offer long satellite life, added safety and more payload capacity. It’s first customer and mentor is ISRO.
Meanwhile, Mumbai-based Kawa Space, which designs and operates earth observation satellites, has closed a seed round of an undisclosed amount. Incubated at IIT-Madras, Agnikul Cosmos and Bengaluru-based start-up Astrogate Labs raised funds from Speciale Invest, a seed-stage investment firm.
These are interesting trends in the country leading to an increase in startups in the space technology sector.
Indeed, investors and VCs are now serious about this domain!
Rise of space startups
NASA’s relentless fascination for lunar explorations continues with its ongoing Artemis program to accelerate human exploration of the moon and to expand commercial partnerships, eventually sending humans to Mars. US space startups are now venturing to deliver equipment to the surface, scout for lunar ice that can be transformed into breathable air & rocket fuel and to build 3-D printing huts on the moon. New York-based multi-planetary design company AI SpaceFactory won NASA competition for designing planetary homes that could be used on moon or mars. Advanced tech company Lunar Outpost plans to deploy rovers on the moon to search for ice and other resources, enabling extended presence on the lunar surface. Astrobotic Technology recently bagged a contract to deliver research payloads to the moon on its Peregrine lunar lander.
There are quite a number of Indian startups also venturing into this sector today.
While giant rockets such as Falcon Heavy or Delta Heavy or GSLV Mk III have dominated this space thus far, smaller rockets are now being developed and launched by many global players, including Indian space startups.
Agnibaan, designed by Chennai-based Agnikul Cosmos and Chetak by Bellatrix Aerospace are a few such examples. Not previously ventured by Indian start-ups!
Bengaluru-based start-up Astrogate Labs is tackling the problem of high speed communication in space, from the current radio and microwave networks to optical. Headquartered in Hyderabad, Dhruva Space builds small satellites for various applications. Team Indus, also Bengaluru-based, is part of a consortium that won a NASA contract for building a moon lander.
Can these space startups build sustainable businesses?
Developing space ecosystem
ISRO is playing a vital role in mentoring Indian space startups, which is great for the space ecosystem in the country. NewSpace India Limited (NSIL), the commercial arm of ISRO, was incorporated in March this year to scale up industry participation in Indian space programmes, including research and development activities. NSIL intends to act as an aggregator for all space related activities in industry and develop private entrepreneurship in space related technologies.
Additionally, the gestation period for these ventures is also getting shorter as companies can now use rockets of ISRO or global launch services such as SpaceX or Rocket Lab to send satellites to space.
With enhanced computational power, satellites are also becoming smaller.
It is much easier now for private companies to do mass production of small satellites and launchers, and use launch pads of ISRO for a fee.
Indian space startups are also looking forward to the long-pending space law expected in the near future, because a legal framework can provide transparency on how private companies need to operate in this sector, with clarity on various issues including safety and supervision, sharing of liability burden, licensing and authorisation procedures.
Race begins
As more and more space startups build versions 1.x of existing business models like small launch vehicles, broadband satellite constellations and earth observation systems, disruptive and novel ideas in an overcrowded market would attract funding and investors.
SpaceX led by Elon Musk recently made an announcement about the “ride share” launch offering, with a new and cost-effective option for small satellite companies who need to put lighter payloads into orbit. SpaceX plans to share space on a Falcon 9 with these small satellites for launch. A good option to capture more of the space business revenue!
With biggies like SpaceX, OneWeb, and now Jeff Bezos led Amazon’s Project Kuiper in the foray, the space sector is indeed hotting up!
These are exciting times for space entrepreneurs across the world.
Space offers infinite possibilities for improving life on Earth.
Will investors and VCs in the country find the space sector a lucrative bet?
Will the Indian startup world witness a flurry of space startups?
Can India gets its Elon Musk?
Will moon & mars be the future economy ?
