Space start-up seeks ₹50cr funding, projects ₹100cr revenue next fiscal
What's the story
SpaceZone India, a Chennai-based space technology start-up, launched its first reusable hybrid rocket, Rhumi-1 last month. Speaking to CNBC-TV18, CEO Anand Megalingam revealed that the successful launch could potentially increase the firm's revenue by 20 times, and boost fundraising efforts. To note, SpaceZone is seeking to raise ₹50 crore in a Pre-Series A round that will close in a month, and is projecting a revenue of ₹100 crore in the next fiscal.
Financial outlook
Revenue and funding prospects soar
"We closed FY24 with a revenue of ₹2.8 crore, and we have already crossed ₹5 crore this fiscal," Megalingam said to CNBC-TV18. He further outlined the company's primary revenue model, as rocket-launch services for educational satellites.
Growth strategy
Future plans and valuation
Megalingam disclosed plans for 10 reusable rocket launches in 2025 with different payloads, projecting a revenue of ₹100 crore in the next financial year.
He also revealed that the start-up is undergoing a valuation assessment, and might be valued at about ₹800 crore once discounted cash flows are accounted for.
His proposition to potential customers is straightforward: save 80% of the cost.
Ventures
Upcoming launches and collaborations
SpaceZone has planned two more launches, Rhumi-2 and Rhumi-3, for 2026 and 2027 respectively.
The company has already finished leak and pressure tests for Rhumi-2, while a static fire test is in progress.
Megalingam shared that they have secured a deal with Dubai-based Edutech4Space, to launch educational satellites on Rhumi-2.
Additionally, an MoU is about to be signed with Grahaa Space for launching 100 nanosatellites.
Focus
SpaceZone developing thruster technology for reusable rockets
"We are seeing interest from deep-tech investors who want to invest in space tech," said Megalingam.
The start-up's present focus is on launching weather, gravity-test, and education satellites.
The firm is are also developing thruster technology for its reusable rockets, to replace the parachute deployment system soon.