Indian space startup Skyroot said on Oct. 30 that it had raised $27.5 million in a pre-Series C funding round led by the Singaporean sovereign wealth fund Temasek Holdings, the latest big-ticket capital injection in the subcontinent’s burgeoning space sector.

With this fresh funding round, Skyroot has raised a total of $95 million, top among Indian space startups. “As we prepare for the launch of our second mission early next year, this new funding will enable us to accelerate our upcoming launches planned over the next two years,” Skyroot co-founder Pawan Kumar Chandana said.

In 2022, Skyroot completed a Series B funding round that raised $51 million and was led by Singapore’s other sovereign wealth fund, GIC.

Established in 2018 by Chandana and Naga Bharath Daka, both former India Space Research Organization (ISRO) scientists, Skyroot has been doing more fundraising in part to support a move into global launch services for the fast-growing small satellite market.

Consultancy McKinsey & Company estimates in a base scenario that there will be 27,000 active satellites in orbit by the end of 2030, up almost 400% from present day. To maintain that number at the assumed lifespan, 4,000 to 5,000 satellites would need to be launched annually. In a high-demand scenario, McKinsey predicts there could be more than 65,000 satellites in orbit by 2030.

Hyderabad-based Skyroot, which launched India’s first privately developed rocket in 2022, plans to launch its second commercial rocket, the Vikram-I, in 2024. The launch vehicle can take payloads of up to 300 kilograms into low Earth orbit. To that end, the company recently transported its 10-m Stage-1 carbon composite motor, the Kalam-1200, from its Max-Q headquarters for further testing. The Kalam-1200 forms the first stage of the Vikram-I launch vehicle.

Skyroot has also signed a memorandum of understanding to launch the satellites of French companies Prométhée Earth Intelligence and ConnectSAT. “The strategic relationship between India and France, coupled with the Indian government’s inclusion of the private sector in its remarkable space endeavors, presents an extraordinary opportunity for both our companies,” Prométhée CEO Olivier Piepsz said.

Meanwhile, competing with Skyroot in the small-launch satellite market is Agnikul, which completed a $26.7 million fundraising round of its own in mid-October. Agnikul previously set up India’s first private launchpad and mission control center in the southern Indian state of Andhra Pradesh.

Data from Indian research firm Tracxn show that equity investments in the Indian space tech startup ecosystem jumped 312% to roughly $115 million in 2022 from $27.9 million in 2020, while up to $62 million had been invested this year as of August.<\/p>