Space startup Agnikul raises additional $27 million in funding ahead of first rocket launch

Space startup Agnikul Cosmos announced on Tuesday that it secured an additional Rs 200 crore (approximately $26.7 million) in funding ahead of its inaugural rocket launch. This development comes as private space companies in India gain momentum following the successful landing of Chandrayaan-3 on the moon.

Rocketship.vc, Artha Venture Fund, Artha Select Fund, and Mayfield India also participated during the funding round.

Chennai-based Agnikul, whose name is inspired by the Hindi and Sanskrit word for "fire," is preparing for the launch of a suborbital rocket from its own launch facility in the coming two months. This milestone will mark India's second private rocket launch, following Skyroot's Vikram-S. The company has now raised a total of $40 million and plans to utilise this latest investment to gear up for commercial space launches.

This move aligns with Prime Minister Narendra Modi's ambition to privatise India's space sector and attract foreign investment, with the goal of increasing India's share of the global launch market fivefold within the next decade.

The successful Chandrayaan-3 moon landing by India in August played a crucial role in bolstering Agnikul's funding prospects, according to the company's co-founder and CEO, Srinath Ravichandran. Although he didn't disclose the company's exact valuation, the recent achievement added significant credibility to the Indian space sector.

Currently, India accounts for just 2 per cent of the $400 billion global commercial space market. However, the Indian government has set its sights on expanding this share to $40 billion by 2040. To encourage business and growth in the space industry, Agnikul aims to significantly reduce launch costs compared to competitors and plans to offer a flexible launch platform with pricing independent of payload mass.

Agnikul has commenced the integration of Agnibaan, its customisable two-stage launch vehicle capable of carrying payloads of up to 300 kg to orbits around 700 km. The company, founded in 2017, operates India's first private launchpad and mission control center. INotably, other launchpads in India are operated by the Indian Space Research Organisation (ISRO).

Arun Kumar, managing partner at Celesta Capital, one of the investors in the latest funding round, commented, "(Agnikul's) mission underscores the spirit of collaboration amongst the Indian Space Research Organisation, space regulators, and entrepreneurs in driving advancements within India's vibrant space-tech ecosystem." 

(With Reuters Inputs)