INSUBCONTINENT EXCLUSIVE:
space technology start-ups are mushrooming in India, catching the attention of investors keen to join the space race.Bengaluru-based
Bellatrix Aerospace, which wants to propel satellites into orbit using electric and non-toxic chemical thrusters, has raised $3 million from
a group of investors, co-founder Yashas Karanam told Reuters.Venture capital fund IDFC Parampara is leading Bellatrix's pre-Series A round
The family office of Suman Kant Munjal, who belongs to the billionaire family that controls motorcycle maker Hero MotoCorp, and Deepika
Padukone, one of Bollywood's biggest stars, are two of the other seven investors.Meanwhile, Mumbai-based Kawa Space, which designs and
operates earth observation satellites, has closed a seed round of an undisclosed amount, one of its investors, Vishesh Rajaram, managing
partner at Speciale Invest, told Reuters.Bellatrix and Kawa are two of over a dozen Indian start-ups developing satellites, rockets and
related support systems which can power space missions serving a range of industries.Their fundraising represents a big leap in private
space investments in India, a leading space power but where the government has enjoyed a near-monopoly for decades."No venture capital firm
which does tech investments in India has invested an amount of this size in space technology before," said Narayan Prasad, co-founder of
online space products marketplace Satsearch, referring to Bellatrix's funding.Besides Bellatrix and Kawa, seven space technology companies
in India are funded, according to start-up data tracker Tracxn and interviews with investors.Space technology is red hot thanks partly to
activity happening 2,000 km (1,200 miles) above the earth in the low-earth orbit, much closer and easier to reach than the geostationary
orbit where many communications satellites operate.Here, small and cheaper satellites are snapping images used in everything from
crop-monitoring and geology to defence and urban planning, bringing down costs and increasing the frequency of images.'Exciting times'In the
past five years, some two dozen Indian start-ups have grown into unicorns - companies with over $1 billion valuations - most betting on the
country's growing middle-class and the consumer boom at home.India's space technology firms are part of a new breed of start-ups, and
investors are paying attention, given the surging global interest in everything from space exploration to space vacations.Satellite launches
planned in the coming years worldwide give investors confidence in such companies, said Bellatrix investor Jatin Desai, whose Parampara
Capital collaborated with lender IDFC to form IDFC Parampara."That gives us a large addressable potential market," Mr Desai said.Over 17,000
small satellites could be launched between 2018 and 2030, consulting firm Frost - Sullivan estimates."There is money to be made These are
exciting times for lots of entrepreneurs," said Mr Rajaram, whose Speciale Invest has bet on three space start-ups in India.Long gestation
periodTo be sure, investors aren't opening the coffers for India's space start-ups in large numbers just yet.Indian venture capital firms
Maple Capital, Ideaspring Capital, Bharat Innovation Fund and 3one4 Capital, say they have held talks with space start-ups but are taking a
wait-and-watch approach."The gestation period is long by the time you see returns," said Naganand Doraswamy, managing partner at Ideaspring,
referring to the multiple stages of development, testing and government approvals involved in space missions.The state-run Indian Space
Research Organization (ISRO), currently preparing for its second lunar mission, has a monopoly on launching rockets in the country.Still,
Indian firms are free to use ISRO's rockets or overseas launch services such as Elon Musk's SpaceX or New Zealand and Los Angeles-based
Rocket Lab to send satellites to space.Most Indian space start-ups are hopeful that Parliament will pass a long-pending space law, which
will give clarity on how private companies can operate in the sector.The administration of Prime Minister Narendra Modi has sought
suggestions from stakeholders for a draft Space Activities Bill, which it has said could "possibly" be introduced in parliament this
year.Bellatrix Aerospace's first customer is ISRO, which is also mentoring the company as it readies a water-based propellant to help
manoeuvre satellites in space.Bellatrix is not the only company racing to develop newer satellite propulsion systems, with at least three
others overseas reportedly working on similar products.The company says its systems are affordable, less toxic and much lighter, providing
more room for payload on satellites
"This will be the future," co-founder Mr Karanam said.
