Hyderabad-based Startup Dhruva Space Bags $9 Million from IAN Alpha Fund
In an impressive demonstration of confidence from investors, Dhruva Space, a leading space tech startup based in Hyderabad, has successfully raised $9.4 million in its latest funding round. This substantial amount comes from a mix of equity and debt, contributed by the IAN Alpha Fund, the Technology Development Board, and other existing investors. The fresh influx of capital, which includes Rs 24 crore in debt, marks a significant milestone in the company’s ambitious expansion plans.
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Setting Up a State-of-the-Art Manufacturing Facility
The funds will primarily be used to establish the first phase of Dhruva Space’s extensive 2.8 lakh square feet spacecraft manufacturing facility in Hyderabad. Strategically located near Shamshabad, close to the Hyderabad International Airport, this facility will bolster the company’s manufacturing capabilities significantly. According to Sanjay Nekkanti, founder and CEO of Dhruva Space, the facility will house manufacturing units for spacecraft solar arrays, satellite subsystems, separation systems for launch vehicles, and an assembly integration and testing facility.
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Governmental Support and Industry Context
The funding round comes at a time when the Indian government is actively promoting the space tech sector. This initiative is part of a broader effort to enhance the country’s capabilities in space technology and encourage private participation. The government had even arranged a meeting for space tech startup founders with Tesla and SpaceX chief Elon Musk, although this has now been postponed.
A Proven Track Record in Space Missions
Dhruva Space has not just been about potential but has shown concrete results in its operations. Over the past two years, the startup has completed four space missions, deploying eight payloads out of the 24 authorized by the government’s Indian National Space Promotion and Authorisation Centre (IN-SPACe). These missions have involved deployers, satellites, communication systems, and nanosatellite platforms, highlighting the company’s comprehensive capabilities in space technology.
Financial Health and Future Projections
In terms of financial performance, Dhruva Space reported revenues of Rs 15 crore for the fiscal year ended March 2024. Looking forward, Nekkanti is optimistic about the company’s revenue prospects, projecting a significant increase to between Rs 1,500-2,500 crore in the next three to five years. This optimism is supported by the planned expansion and the growing demand for satellite and satellite-enabled services globally.
Additional Funding and Strategic Vision
Looking ahead, Dhruva Space is preparing to raise another significant funding round of above $30 million within the next 12-18 months. This funding will be crucial for further developing infrastructure and supporting the various programs being built for customers. Founded in 2012 by Nekkanti, Chaitanya Dora Surapureddy, Abhay Egoor, and Krishna Teja Penamakuru, the company has grown to serve both civilian and defence clients across the globe, with operations in Hyderabad, India, and Graz, Austria.
Conclusion
With the latest round of funding, Dhruva Space’s total corpus raised in series A funding stands at Rs 123 crore (about $14 million). As Nekkanti put it, this new funding is “instrumental in supporting the industrialization and manufacturing of Dhruva Space’s full-stack products, enabling significant team growth, increased development of capability and infrastructure, and fueling the international expansion of our business.” This development not only cements Dhruva Space’s position as a pivotal player in the global space tech landscape but also signals the potential for further innovation and growth in the Indian space tech sector.
