Skyroot Aerospace has made history as India's inaugural space tech unicorn, securing $60 million in funding ahead of its first orbital launch of the Vikram-1 rocket, scheduled for the coming weeks. This investment round has valued the Hyderabad-based startup at $1.1 billion, reflecting a significant increase from its previous valuation of $500 million.
The funding comprises approximately $50 million in primary equity, co-led by Sherpalo Ventures and GIC, along with around $10 million in structured debt managed by BlackRock-affiliated funds. This financial boost comes as Skyroot gears up for a landmark event in India's space exploration journey, marking the first orbital launch attempt by a private Indian company.
The Vikram-1 rocket, which is designed to carry payloads of up to 350 kilograms (about 772 pounds) into low Earth orbit, was sent to India's spaceport in Sriharikota in April. Following the completion of flight qualification tests, the startup aims for a launch in June, initiating a new era for private space endeavors in India.
Founded in 2018 by former Indian Space Research Organization (ISRO) engineers Pawan Kumar Chandana and Naga Bharath Daka, Skyroot is developing small satellite launch vehicles comparable to those from American firms like Rocket Lab and Firefly Aerospace. The latest funding round attracted participation from Playbook Partners, Arkam Ventures, and the founders of Greenko Group, with Ram Shriram from Sherpalo Ventures joining the board of Skyroot.
While specific revenue figures and customer backlog details remain undisclosed, Skyroot has indicated a robust demand for dedicated launches from small satellite operators, with one-third of this demand expected from India and the rest from international clients. The new capital will be utilized to enhance manufacturing capabilities, increase the frequency of Vikram-1 launches, and support the development of Vikram-2, a heavier-lift vehicle anticipated to debut in 2027.
Vikram-2 is being engineered as a one-ton-class launch vehicle powered by a cryogenic stage, significantly expanding Skyroot's capacity to undertake more complex satellite missions and compete in the burgeoning global market for small satellite launches.
Skyroot's growth aligns with India's strategic push to enhance its share of the global space economy, projected to expand from an estimated $8.4 billion to $44 billion by 2033. The emergence of nearly 400 space-tech startups in the country underscores the potential for innovation and collaboration in this dynamic sector.
The upcoming Vikram-1 mission represents a pivotal moment as India builds additional commercial launch capabilities alongside ISRO, which has recently faced challenges in its missions. Reforms since 2020 have facilitated private firms' access to ISRO facilities, fostering a vibrant ecosystem for startups in launch systems, satellites, and propulsion technologies.