Dr Pawan Goenka was confident that as more proofs of concept were available, more investment would come in. 
Special 
Dr Pawan Goenka was confident that as more proofs of concept were available, more investment would come in. Dr. Pawan Goenka, chairperson of the country’s single window nodal agency for authorising, promoting and regulating private players IN-SPACe, has an advice for startups in the country’s spacetech ecosystem: They must communicate better to attract serious capital.
“All startups that are approaching investors, they need to be very good in communicating their story. And those stories need to be communicated in a language that are understood by investors and not just PhDs,” Dr. Goenka told Business Today on the sidelines of the Bengaluru Space Expo 2022, which concluded Wednesday.
More than 75 startups are registered under the spacetech category on the Startup India portal, according to government data. Several more start-ups registered under other categories on the same portal are also involved in the space domain. And Dr. Goenka, the former managing director of automaker Mahindra & Mahindra is keen to get venture and private equity firms to fund these newbies.
Talking about Telangana-based small launch vehicle or rocket startup Skyroot Aerospace successfully raising $51 million in Round-B funding, Dr. Goenka said, “It is very significant as it is by far the largest investment that has happened in an Indian spacetech startup in one round. It is something that paves the way for similar big-ticket investments to happen in India.”
He was confident that as more proofs of concept were available, more investment would come in. “I hope that the next big investment will be going beyond $50 million to take us to the next level,” said Dr Goenka.
While the country is experiencing a funding winter (a phase that is expected to continue for the next 12-24 months feel experts) right now in the usually favourite segments such as edtech, consumer services and e-commerce, startups in the spacetech sector have collected $170 million in funding in the last three years. This implies a CAGR increase of 140 per cent during the period.
“I have personally spoken to a few investors to understand their hesitation in investing in spacetech startups. They are looking at the sector as it’s almost like a white space. However, they also want demonstrations on the technical side as well as business aspects,” declared Dr. Goenka.
The year 2022 has so far turned out to be particularly memorable for the Indian spacetech startups, with the average ticket size increasing from $0.5 million in 2019 to $17 million in 2022, according to data services provider Tracxn Technologies. Before Skyroot breached the fundraising record in the segment, about seven months ago Bengaluru-based hyperspectral small satellite maker Pixxel raised $25 million in a Series-A round.
“As more and more startups enter the sector and prove their technologies, funding will only grow from here on out. I am extremely bullish on the future of the private space economy in India, especially over the coming decade,” founder & CEO of Pixxel, Awais Ahmed told BT.
Also read: EXCLUSIVE: Things progressing well in commercial space sector, says Dr Pawan Goenka
Also read: Ex-M&M MD Pawan Goenka named chairperson of space regulator IN-SPACe
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