GalaxyEye, an Indian space tech startup that aims to launch its first satellite next year, has raised $6.5 million in its Series A round of funding, with plans to raise more capital in the coming months.
The round was led by Speciale Invest and Mela Ventures. While Speciale Invest has backed other spacetech startups such as Agnikul and Astrogate Labs previously, this is Mela Ventures’s maiden spacetech investment.
The round also saw participation from ideaForge, with additional investments from Rainmatter, Navam Capital, Faad Capital, and Anicut Capital.
In an interaction with DealSteetAsia, GalaxyEye’s co-founder and CEO Suyash Singh said the firm is looking to raise 20-30% more than what it has already raised, in the ongoing round.
Founded in 2020, the company is the brainchild of a few members hived out of Avishkar Hyperloop, a global competition organised by Elon Musk’s aerospace manufacturer and space transportation services company SpaceX.
The company develops technologies that work in space, monitoring Earth and envisioning monitoring outer space, while also accelerating the growth of space infrastructure enabling multi-planetary evolution.
The Bengaluru-based startup aims to launch its first multi-sensor satellite, along with the commercial deployment of the UAV SAR system, in mid-2025.
GalaxyEye is one of the many space tech startups receiving funding in India.
India’s space economy, traditionally dominated by government agencies, has seen significant participation of private players in the last few years, with the number of spacetech startups going up from just 11 in 2019 to over 100 by the end of 2021, per the Economic Survey 2022. The number has further increased, say analysts tracking the sector, as companies gear up to tap the enormous growth potential projected for the sector.
Last month, the Indian government announced a plan to set up a sector-focused Rs 1,000-crore (about $120 million) venture capital fund.
While many early-stage startups such as Bellatrix Aerospace, Agnikul, Bluesky Analytics, Digantara and Pixxel have raised funds, not much investment has happened in the later stages of funding.
Of the total $126 million raised by spacetech startups in India, $120 million was raised by early-stage companies, according to a recent report by Tracxn.
“Raising amounts less than $2-4 million is still feasible and exciting, as everyone wants to place their bets and learn how things progress. However, we haven’t seen significant capital flow into the mid- to late-stage rounds yet, though interest is growing.” Singh said.
“We have certainly spent a good time in the market to raise the funds, compared with the same Series A for a consumer tech startup or some other,” he added.