Pune based startup VestaSpace Technology has raised its first-ever external fund in a $10 million investment from Chicago headquartered investment and advisory firm Next Capital, the company told TechCircle on Thursday.
“Yes this is the first round of funding, as we were a self funded company, which started with $3 million seed funding after selling my drone software,” founder Arun Kumar Sureban said.
The fresh funds will be utilised in the expansion of operations across India and abroad through the acquisition of ground stations for development of communications satellites, a move from which the company expects to achieve a 300% growth rate.
VestaSpace provides software for commercial and scientific applications of satellites. The applications include technology demonstration, communications, and earth observation missions, among others.
Its product offerings include small satellite, cube satellite, nanosatellite, mission analysis, and design, launch assist, and ground station. The company has claimed to have worked with the Indian Space Research Organisation (ISRO).
VestaSpace will launch a new satellite in September 2020.
Founded in 2018 by astronautical engineer Sureban, the company has additional offices in Bengaluru and Pasadena. It had initially started off as a venture to offer the benefits of using small satellites, satellite communication, sensors, and connected devices to startups and mid-size businesses.
“Our association with Next Capital LLC began with my stay in the US for a project and has culminated into a promising financial deal that was cracked in April… VestaSpace technology is aiming to acquire greater momentum by enabling businesses to leverage the potential of small and nanosatellites in India,” Sureban said in the statement.
Although space technology companies in India are nascent, they have garnered investor interest since 2019. In December, Hyderabad based Dhruva Space, a startup that provides end-to-end solutions for building small satellites, had raised $0.7 million in an angel funding round from Mumbai Angels Network and other angel investors from outside the network.
In September, Mumbai-headquartered Kawa Space, which designs and operates earth observation satellites, raised an undisclosed amount of funding from Paytm founder Vijay Shekhar Sharma. In June, Bengaluru-based Bellatrix Aerospace, a research and development firm that specializes in satellite propulsion, raised $3 million in a seed round of funding.