In a significant development, Spacetech startup Skyroot Aerospace, headquartered in Hyderabad, has successfully raised a total of Rs 225 crore (approximately $27 million) in a pre-Series C funding round, with Temasek leading the investment. This marks the third funding round that Skyroot Aerospace has completed since January 2022, bringing their total funding to an impressive $95 million.
The substantial funding injection is expected to empower Skyroot Aerospace to enter its next phase of growth, consolidate its position as a technology leader, and boost both its launch capabilities and frequency. Moreover, it will enable the company to attract new talent and expedite its upcoming launches scheduled for the next two years, as shared by Skyroot’s co-founder, Pawan Kumar Chandana, in a recent press release.
While the exact valuation of the company following this investment round remains undisclosed, it’s worth noting that during their Series B round in September of the previous year, Skyroot was estimated to be valued at approximately $165 million or Rs 1,304 crore, post-allotment, according to TheKredible.
Skyroot Aerospace’s continued success is reinforced by its backing from prominent investors, including Celesta Capital, and Rocketship.vc, Artha Venture Fund, Mayfield India, Pi Ventures, and Speciale Invest.
Established in 2018 by former scientists of the Indian Space Research Organisation (ISRO), Chandana and Naga Bharath Daka, Skyroot Aerospace has earned the distinction of being the first Indian private aerospace company to conduct a successful test of a fully cryogenic rocket engine, which they named Dhawan-1, in honour of the renowned Indian scientist Satish Dhawan. More recently, the company proudly announced the successful launch of Vikram-S, India’s first privately developed rocket.
Spacetech startups have been capturing the interest of investors, with data from TheKredible indicating that approximately $120 million has been invested in the sector so far this year. This represents a significant increase from the $95 million invested in 2022 and the $33 million invested in 2021 and 2020.
Notably, one of Skyroot’s closest competitors, Agnikul Cosmos, recently secured nearly $27 million in funding, with Celesta Capital and other investors participating. In addition to Agnikul, Skyroot faces competition from companies like Pixxel, Bellatrix, GlaxEye, Dhruva, Vesta Space, Digantara, and InspeCity.
In June, Digantara raised $10 million in a Series A1 funding round, while Pixxel secured an impressive $36 million in a Series B round, which included investment from tech giant Google.
Until the fiscal year 2023, Skyroot Aerospace remained in a pre-revenue phase, generating just Rs 40 lakh in revenue while incurring losses of Rs 55 crore, as reported in their annual financial statement filed with the Registrar of Companies. Nonetheless, with this recent funding infusion, the company is poised to accelerate its journey towards becoming a key player in the dynamic field of space tech.
