Reliance Industries is in advanced discussions to lead a $50 million (around Rs 430 crore) funding round in spacetech startup Digantara Research & Technologies, which is focused on space situational awareness and surveillance, people familiar with the matter told ET. Existing investors, including Peak XV Partners, are also expected to participate in the round.
The funding would mark a significant bet on India’s emerging space surveillance sector that is gaining traction amid increasing global geopolitical tensions and rising defence spending.
“Reliance has evaluated multiple startups in the spacetech segment. It is looking at companies building novel solutions in the sector. Its talks with Digantara are at an advanced stage,” a person aware of these discussions said.
Digantara develops systems that track and monitor objects in Earth’s orbit – critical technology as both civilian and military interest in space grows. In March this year, the company launched a satellite capable of tracking debris as small as 5 centimetres, and it currently provides services to defence agencies in India and the US, according to a person aware of the company’s operations.
“Given the volatility in global geopolitics, every country is focused on having its own indigenous sovereign solutions that can be controlled in times of crisis. That’s where the opportunity lies for startups like Digantara,” this person said.
Digantara plans to establish a constellation of 12-13 surveillance satellites by the end of 2026. So far, it has launched three, including one as part of the planned constellation. “A large part of the funds raised will be utilised toward the capital expenditure for this infrastructure buildout,” the person cited above said.
Founded by students Anirudh Sharma (CEO) and Rahul Rawat (COO), who teamed up with aerospace engineer Tanveer Ahmed (CTO), Digantara was adjudged winner of the Best on Campus category at the ET Startup Awards in 2023.
While Digantara’s current focus is on defence contracts, it is also eyeing commercial opportunities in space situational awareness. In February, ahead of Prime Minister Narendra Modi’s visit to the US, the startup announced the opening of a dedicated manufacturing and operations facility there. At the time, Digantara had said that it expects to make $25-30 million (Rs 220-260 crore) in revenue over a two to three-year timeframe following its US expansion.
The company had previously raised $10 million in 2023 from Peak XV and Kalaari Capital, and another $2 million in February 2024 from Aditya Birla Ventures and the Small Industries Development Bank of India (Sidbi). Notably, Kalaari Capital had backed Digantara from its fourth fund, in which Reliance Industries is an anchor limited partner (LP), or investor in the fund.
Reliance Industries and Digantara founder Sharma did not respond to queries from ET. A Peak XV Partners spokesperson said, “There are no comments from us.”
In addition to spacetech, investor interest in startups building defence solutions in India has picked up. In June, military drone maker Raphe mPhibr raised $100 million in funding led by Silicon Valley investor General Catalyst.
In October last year, the Union Cabinet approved a Rs 1,000-crore venture capital fund to back 30-35 space startups over five years to catalyse private investment in the sector. Satellite imagery firm Pixxel raised $24 million from M&G Catalyst and Glade Brook, with participation from Google and Lightspeed. Besides, several other younger startups such as InspeCity, Orbitt Space, OrbitAID and Inbound Aerospace, have raised smaller rounds this year.
The funding would mark a significant bet on India’s emerging space surveillance sector that is gaining traction amid increasing global geopolitical tensions and rising defence spending.
“Reliance has evaluated multiple startups in the spacetech segment. It is looking at companies building novel solutions in the sector. Its talks with Digantara are at an advanced stage,” a person aware of these discussions said.
Digantara develops systems that track and monitor objects in Earth’s orbit – critical technology as both civilian and military interest in space grows. In March this year, the company launched a satellite capable of tracking debris as small as 5 centimetres, and it currently provides services to defence agencies in India and the US, according to a person aware of the company’s operations.
“Given the volatility in global geopolitics, every country is focused on having its own indigenous sovereign solutions that can be controlled in times of crisis. That’s where the opportunity lies for startups like Digantara,” this person said.
Digantara plans to establish a constellation of 12-13 surveillance satellites by the end of 2026. So far, it has launched three, including one as part of the planned constellation. “A large part of the funds raised will be utilised toward the capital expenditure for this infrastructure buildout,” the person cited above said.
Founded by students Anirudh Sharma (CEO) and Rahul Rawat (COO), who teamed up with aerospace engineer Tanveer Ahmed (CTO), Digantara was adjudged winner of the Best on Campus category at the ET Startup Awards in 2023.
While Digantara’s current focus is on defence contracts, it is also eyeing commercial opportunities in space situational awareness. In February, ahead of Prime Minister Narendra Modi’s visit to the US, the startup announced the opening of a dedicated manufacturing and operations facility there. At the time, Digantara had said that it expects to make $25-30 million (Rs 220-260 crore) in revenue over a two to three-year timeframe following its US expansion.
The company had previously raised $10 million in 2023 from Peak XV and Kalaari Capital, and another $2 million in February 2024 from Aditya Birla Ventures and the Small Industries Development Bank of India (Sidbi). Notably, Kalaari Capital had backed Digantara from its fourth fund, in which Reliance Industries is an anchor limited partner (LP), or investor in the fund.
Reliance Industries and Digantara founder Sharma did not respond to queries from ET. A Peak XV Partners spokesperson said, “There are no comments from us.”
In addition to spacetech, investor interest in startups building defence solutions in India has picked up. In June, military drone maker Raphe mPhibr raised $100 million in funding led by Silicon Valley investor General Catalyst.
In October last year, the Union Cabinet approved a Rs 1,000-crore venture capital fund to back 30-35 space startups over five years to catalyse private investment in the sector. Satellite imagery firm Pixxel raised $24 million from M&G Catalyst and Glade Brook, with participation from Google and Lightspeed. Besides, several other younger startups such as InspeCity, Orbitt Space, OrbitAID and Inbound Aerospace, have raised smaller rounds this year.
