Ram Shriram: Early Google Investor Now Backs India's First Space-Tech Unicorn

India's First Space-Tech Unicorn: Skyroot Aerospace Raises $60 Million

On May 7, Skyroot Aerospace announced a significant milestone in its journey, securing $60 million in a fresh funding round co-led by Sherpalo Ventures and Singapore's sovereign wealth fund GIC. This investment values the Hyderabad-based rocket company at $1.1 billion, making it the first Indian private space company to enter the unicorn club.

The funding round, which also saw participation from BlackRock, the founders of renewable energy company Greenko Group, Arkam Ventures, Playbook Partners, and the Shanghvi Family Office, brings Skyroot's total funding to $160 million. This significant influx of capital will be deployed across three key priorities: establishing a high cadence of Vikram-1 launches, scaling up manufacturing, and developing Vikram-2, a one-tonne class launch vehicle powered by an advanced cryogenic stage.

A Remarkable Second Act

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Ram Shriram, founder of Sherpalo Ventures, has a long history of investing in disruptive technologies. In 1998, he wrote a cheque for a search engine that two Stanford students were building in a garage - Google. On Wednesday, Shriram's Sherpalo Ventures co-led a $60 million round in Skyroot Aerospace, marking one of venture capital's most remarkable second acts.

Skyroot was founded in 2018 by former ISRO engineers Pawan Kumar Chandana and Naga Bharath Daka. The company provides on-demand satellite launch services with a focus on low-cost launch vehicles. In 2022, Skyroot became the first Indian private firm to launch a rocket into space with its Vikram-S sub-orbital mission. The company made an orbital launch in 2023 and is now preparing for the imminent launch of Vikram-1, India's first private orbital rocket.

A Bright Future Ahead

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With this round, Skyroot will be able to accelerate its growth, expand its manufacturing capabilities, and develop new launch vehicles. The company is well-positioned to capitalize on the growing demand for launch services, driven by the increasing number of small satellites being launched into space.

The global space economy is valued at approximately $600 billion and projected to triple by 2030. India's space sector, in particular, is seen as a "once in a lifetime opportunity" by co-founder Chandana. The company's ability to establish a high cadence of launches, scale up manufacturing, and develop new launch vehicles will be critical to its success in this rapidly growing market.