When computer science undergrads Anirudh Sharma and Rahul Rawat attended a conference organised by the Indian Space Research Organisation a few years ago, little did the two Lovely Professional University students know that winning the best student research award for their paper on ‘smoke detection in space’ would give them the boost they needed to start their venture in spacetech.
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The duo always had an interest in physics and space – but it was only after this win that they decided to make a career out of it. Sharma reached out to over 400 space agencies and research organisations globally, seeking support/advice – only one Latin American space agency agreed. During their university days, not only did they develop tech to track space objects but also secured patents and sold satellite components to this agency, culminating in the launch of the spacetech startup, Digantara.
ETtechDigantara bagged the Best on Campus award at The Economic Times Startup Awards 2023. Besides its technology prowess, the elite jury appreciated how it was able to start up from campus in a complex segment like spacetech and build traction in a competitive space that has recently seen a lot of entrepreneur and investor interest.
“Founding a space startup on a university campus has been an incredible adventure,” said Sharma, now CEO of the company, which has Rawat and aerospace engineer Tanveer Ahmed of RV College of Engineering as cofounders. “Convincing investors/partners of our capabilities as 20-year-olds was challenging, but our commitment to building innovation in the space situational awareness (SSA) domain helped us overcome scepticism.”
Having no prior experience of the complexities of building a startup in a sector like this in fact turned out to be a blessing in disguise.
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“We went all in,” said Sharma.Today, the rapid growth of the space industry on a global scale has been hugely beneficial for Digantara, which is dedicated to comprehensively understanding and monitoring what unfolds within the intricate orbits above our planet. Digantara says it is the sole company in India that covers the entire value chain of SSA: from establishing the essential infrastructure required to track objects to the development of a sophisticated software platform that offers in-depth analytics.
Previously dominated by government players, India’s spacetech segment has seen a surge in private sector participation post-privatisation of the space sector. According to Tracxn data, the industry has attracted $62 million in funding in the first half of 2023, a 60% increase over the same period last year and compared with only $35 million raised between 2010 and 2019.
The government’s budget 2023 initiatives further support the private enterprises’ role in this sector and there are also plans for a production linked incentive scheme for satellite manufacturing. The success of the Chandrayaan-3 mission is likely to add further impetus. Since 2020, Pixxel ($97.1 million), SkyRoot ($72.3 million) and AgniKul ($34.8 million) are the highest-funded startups in this segment, says Tracxn data.
Digantara has raised $12.5 million in funding so far from the likes of Peak XV Partners (formerly Sequoia Capital India), Kalaari Capital, Global Brain Ventures and Campus Fund.
What’s next?
Digantara is on track to launch its own satellites that will provide access to crucial data from space, says chief operating officer Rahul Rawat. A significant part of the funding will be allocated to building space infrastructure, and to further develop and enhance the Space Mission Assurance Platform. Digantara has set a target to launch eight missions as part of its Phase-1 expansion.
The startup is working with a few national space agencies already and has its own fully owned subsidiary in Singapore. “At this point, we have a couple of million dollars secured in our order book for the upcoming fiscal year,” said Sharma.
The maximum traction continues from government and defence agencies which recognise the strategic importance of SSA in safeguarding national interests, assets and space-based operations, said Sharma. However, commercial users, including satellite operators, space tourism companies, and emerging space industries, are expected to play an increasingly significant role in its order book in the coming years.
Digantara is in talks with potential investors for the next funding round. “This will primarily focus on our go-to-market strategy and market expansion efforts as we aim to reach new customers and expand our global presence,” said Sharma. The company is also hiring actively.
According to Sharma, despite stumbling into this sector with no prior space or business background, it’s been an incredibly rewarding journey.
“Limited funds initially pushed us to be resourceful, fostering innovation and fiscal responsibility that still guide us today. Building a space startup goes beyond finances; it’s about gaining access to infrastructure and assembling a visionary team,” said Sharma.