Mumbai-based spacetech startup InspeCity, incubated at the Indian Institute of Technology (IIT) Bombay, has raised USD 5.6 million (~INR 46 crore) in a landmark seed funding round. The round was led by veteran investor Ashish Kacholia, through his firm Lucky Investment Managers, and drew participation from Speciale Invest, Shastra VC, Antler India, DeVC, MGF Kavachh, and Anicut Capital.
Founded in 2022 by Professor Arindrajit Chowdhury from the Department of Mechanical Engineering at IIT Bombay and alumnus Tausif Shaikh, InspeCity is on a mission to disrupt the economics and sustainability of satellite operations. The company focuses on in-orbit satellite servicing, life extension and de-orbiting solutions to address the growing problem of orbital congestion and satellite obsolescence.
Aiming for the ISAM Opportunity
At the heart of InspeCity’s vision is the ISAM (In-Space Servicing, Assembly, and Manufacturing) market, projected to reach USD 14 billion (~INR 1.19 lakh crore) by 2030. With its flagship platform VEDA (Vehicle for Life Extension and De-orbiting Activities), InspeCity plans to offer a vertically integrated solution combining propulsion, robotics, and Rendezvous, Proximity Operations, and Docking (RPOD) technologies—all developed in-house.
A demonstration mission is planned for 2027, which will see the deployment of a satellite to validate its propulsion system in space. The company aims to achieve space-qualification of its core technologies within the next 12 months, with current development efforts centered on propulsion subsystems as the first milestone.
“This capital infusion validates our unique approach and fast-tracks our journey to market leadership in satellite life-extension,” said Prof. Chowdhury. “By extending the lifespan of on-orbit assets and reducing orbital debris, we unlock a cleaner, more sustainable, and cost-efficient future for space.”
Backed by Government and Global Partnerships
InspeCity has already made good progress, having got contracts and validation under the Ministry of Defence’s iDEX (Innovations for Defence Excellence) program which awarded the startup a grant of INR 25 crore. This early stage funding has helped accelerate the startup’s R&D work.
InspeCity has also signed a memorandum of understanding (MoU) with Japan based Orbital Lasers to explore laser based space debris removal and is building international partnerships in Taiwan and Japan to expand its footprint in the Indo-Pacific region. While US and Europe are primary markets, the startup sees potential in Southeast Asia and West Asia as well.
Market Relevance and Strategic Timing
Satellite life-extension is an increasingly vital frontier in global space operations. Traditional satellites have a life of 10 to 15 years primarily constrained by fuel exhaustion. Extending the operational life is a compelling economic alternative to expensive replacements – sometimes getting an additional 5 years of service at a fraction of the cost of a new satellite.
InspeCity enters the scene when Northrop Grumman has already demonstrated success with their Mission Extension Vehicle and companies like Starfish Space are raising significant funding for their in-orbit servicing vehicles. But as Prof. Chowdhury points out, these technologies are not yet at TRL-9 (Technology Readiness Level 9) across the board, so there is still room for new entrants.
Building India’s Deeptech Future
Beyond commercial impact, InspeCity symbolizes the next phase in India’s deeptech revolution. With strong academic roots and indigenous technology development, it aligns with recent government pushes—such as the Indian Space Policy 2023, the establishment of IN-SPACe, and a INR 1,000 crore venture capital fund announced in the Budget 2024–25 to promote domestic spacetech startups.
“InspeCity represents the next wave of Indian deeptech: visionary, globally relevant, and deeply technical,” remarked Vishesh Rajaram, Managing Partner at Speciale Invest. “They are uniquely positioned to lead the charge in orbital sustainability.”
As India strives to carve a prominent place in the global space economy, InspeCity’s integrated model, pioneering spirit, and early validation mark it as a startup to watch—poised not just to serve markets but to shape them. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.