Indian Startups Face Funding Squeeze as ISRO Shifts Strategy
· Business · Economic Times, Reuters
India's late-stage funding market is experiencing a downturn, with total funding falling 38% to $5.6 billion in 2025-26 and fewer $100-million-plus deals being closed. Startups are facing lower valuations and are increasingly opting for debt over equity to manage capital needs. Meanwhile, ISRO is moving to outsource the production of routine rockets and satellites to private companies and PSUs to focus on advanced research. This strategic shift has prompted nine employee associations to seek clarity on the agency's future workforce role, though executives argue the change is necessary to reach a $44 billion space economy by 2033.
Why it matters
The funding crunch is forcing Indian startups to reset valuations and operational strategies, while ISRO's pivot signals a major structural change in the domestic space industry.
Read the original report — Economic Times
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