India’s Space-Tech Liftoff, BluSmart’s Insolvency Proceedings, and Eternal Gets Tax Notice

For decades, India’s technological identity was anchored in software and IT services. But the country’s most exciting transformation today is unfolding not in code, but in hardware - in rockets, satellites, and deep-tech engineering. The private space sector, once non-existent, has gone from a lone startup in 2014 to over 350 players in 2025. This signals India’s pivot from being the world’s outsourcing hub to becoming a deep-tech innovator.

The policy shift was decisive. The Indian Space Policy 2023, along with the creation of IN-SPACe, opened doors that were previously bolted shut. ISRO, once the sole custodian of India’s cosmic ambitions, is now collaborator-in-chief, lending facilities, infrastructure, and institutional heft to startups. The results have been remarkable. Skyroot Aerospace became the first private company to launch a suborbital rocket in 2022 and has since test-fired India’s largest privately developed rocket stage. Agnikul Cosmos created the world’s first 3D-printed, single-piece rocket engine and launched it from its own pad. Pixxel is assembling a constellation of hyperspectral satellites that promise to act as a health monitor for the planet, while Digantara is mapping space debris with one of the world’s first commercial SSA satellites.

The numbers illustrate the shift. The space economy contributed $60 billion to GDP between 2014 and 2023 and created 96,000 jobs, with every dollar spent generating a $2.54 multiplier effect. The government now wants five space-tech unicorns and 50 launches a year within the next five years. Ambitious, yes, but not unthinkable. With $5.1 billion in equity funding raised since 2020, the sector is drawing both domestic and international capital, aided by initiatives like the ₹211 crore Fund of Funds allocation and a new ₹1,000 crore space-tech support program.

Still, momentum doesn’t guarantee a win. India graduates only about 8,000 aerospace engineers annually, a paltry 0.5% of its total engineering output. Most space startups end up retraining talent from other industries, stretching capital and slowing progress. Capital intensity itself is unforgiving; Skyroot has raised $95 million, but that’s still a drop in the bucket compared to the billions that SpaceX has consumed. And mission risk looms large. One failed launch could spook investors and unravel years of credibility.

Globally, the parallels are instructive. The U.S. handed over its space economy to private hands through NASA contracts, paving the way for SpaceX and Blue Origin. China, by contrast, has pursued a more state-directed program, conducting 226 space missions since 2020 compared to India’s 16. India is charting a third path: a symbiotic model where ISRO’s experience and credibility de-risk private ventures. This hybrid could be India’s differentiator - neither fully state-dominated like China nor fully privatized like the U.S.

The competitive question, of course, is whether India can sustain cost advantages in a world where SpaceX’s reusability has undercut launch costs by a factor of five. The answer won’t come from imitation but from specialization. Pixxel’s hyperspectral imaging, Agnikul’s 3D-printed engines, and Bellatrix’s propulsion systems aren’t about beating SpaceX at its own game; they’re about carving niches the giants overlook.

We think the road ahead has two horizons. In the near term, 1-2 years, the inflection point will be whether Skyroot or Agnikul can pull off repeatable orbital launches. If they succeed, it will unlock patient capital and institutional trust. In the long term, India could itself position among the top global space powers by 2040.

Our opinion is that this moment is both fragile and monumental. Fragile because one failure could chill capital, monumental because for the first time India has the scaffolding - policy, talent, capital, and ambition - to go beyond software and build a hardware-led tech identity.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Hum First Hum First”: 200 Applicants Stake Claims Worth INR 500 Cr For Assets

BluSmart’s insolvency proceedings have turned into a crowded courtroom drama, with nearly 200 applicants lining up to stake claims worth ₹500 Cr.

Leading the charge is Catalyst Trusteeship with ₹250 Cr, trailed by IREDA’s ₹130 Cr. Even former C-suite executives and cofounder Punit K Goyal have jumped in, filing hefty “employee dues” claims of over ₹1 Cr each.

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“Kahin Door Jab Din Dhal Jaaye”: Eternal Gets INR 40 Cr Tax Demand Notice

Zomato’s parent Eternal Limited has been slapped with a hefty tax bill over ₹40 Cr by the GST department.

The three orders span 2017 to 2020, with the biggest chunk being nearly ₹28 Cr in excess input tax credit claims. Eternal has confirmed the demand in a regulatory filing, but the food delivery giant now has a fresh fiscal headache to chew on.

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“Jhukna Padega Milord Ke Saamne”: Won’t Challenge New Online Gaming Laws, Says Dream11’s Harsh Jain

Dream11’s Harsh Jain has decided not to take the fight to court over India’s new online gaming laws, saying he hoped for regulation instead of bans.

While jobs are safe, the fantasy sports giant will slash spends on marketing and partnerships. The focus now shifts to AI-powered sports content, commerce, and fan experiences, a new innings beyond just fantasy play.

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“Rishta Wahi, Soch Nayi”: Urban Company Launches ‘Revamp’ To Offer One-Day Home Makeovers

Urban Company is stepping into the fast lane of home makeovers with a new sub-brand, Revamp, promising one-day transformations in Mumbai, Delhi-NCR, Bengaluru, and Hyderabad. It allows users to book one-day micro home makeovers.

The move is aimed at unlocking fresh revenue streams as the startup gears up for a potential IPO next year.

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1. Mumbai-based robotics startup Emotix, maker of the AI-powered kid’s robot Miko, is set to bag a massive $151 Mn (₹1,325 Cr) from AMDG-PAX Foundation. The funding, cleared via preferential shares, marks one of the largest bets on India’s consumer robotics space.
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2. Former Leap executives’ quick commerce venture Peeko has secured $3.2 Mn in seed funding. The fresh capital will fuel its early expansion push in India’s fast-evolving delivery race.
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3. Kitchenware startup Cumin Co. has raised $1.5 Mn in a round led by Fireside Ventures, with Huddle Ventures also participating. The toxin-free cookware brand, already profitable, plans 80 new product launches by year-end.
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