National Space Day: Zerodha's Nithin Kamath vouches for 'patient capital' in space-tech startups

As India marks its inaugural National Space Day, Zerodha CEO Nithin Kamath has emphasised the importance of "patient capital" to support the country's ever-rising space tech startups, including notable names like AgniKul Cosmos and GalaxEye.

Speaking on this significant occasion, Kamath highlighted the unique challenges space tech ventures face, which require substantial investment in cutting-edge research and technology.

In a post on X, Kamath wrote," Today is the first National Space Day It's a matter of pride that we have many amazing homegrown space startups, like @AgnikulCosmos and @GalaxEye, both from the @Rainmatterin portfolio. Agnikul recently tested the world’s first 3D-printed rocket engine and is aiming to launch a satellite by 2025. Considering the cutting-edge research and technology needed, spacetech startups, more than other startups, need patient capital. So here's hoping we'll have more homegrown spacetech startups that will make us proud."

Understanding patient capital

Patient capital is a long-term investment strategy that contrasts with traditional private equity and venture capital.

It focuses on sustainable growth and financial returns over extended periods, often spanning several years or even decades.

This approach allows investors to support businesses through follow-on funding, helping them accelerate growth and enhance return on investment (ROI).

The National Space Day!

India celebrated its first National Space Day on August 23, commemorating a landmark achievement in Indian space exploration.

Exactly one year ago, the Indian Space Research Organisation (ISRO) successfully soft-landed its Chandrayaan 3 mission on the Moon's south pole, making India the first country to achieve this feat. The government has announced that this day will be celebrated annually to honour the rapid advancements in the space sector.

Since the liberalisation of the space industry in 2020, over 300 startups have emerged, showcasing the financial potential of space exploration. The government noted that the space sector's growth significantly contributes to the economy, with a remarkable 132% increase in the budget allocated to this field.