Skyroot Aerospace In Talks To Raise $200 Mn At Near Double Valuation

Hyderabad based space tech startup Skyroot Aerospace has asked interested investors to submit bids to invest in the company at a valuation of $2 billion, up 80% from the $1.1 billion it commanded during its previous fundraise in May, according to a report by Moneycontrol.

Skyroot's fundraising process this time differs from a typical financing round, where founders or investment bankers pitch the company to prospective investors. Instead, the company has asked interested investors to submit bids, after which it will evaluate the offers and decide which investors to partner with.

Investors Line Up After Vikram-1 Launch

The renewed investor interest stands in contrast to Skyroot's previous funding round, where most of the money came from existing investors and the process took longer to close, with only a handful of investors willing to back a spacetech startup at the time.

The dynamics changed after Skyroot's milestone last month. On July 18, the company launched Vikram-1, India's first privately developed orbital launch vehicle, a landmark moment for the country's commercial space sector. Investors have been approaching the company since then, the report said.

"The company's ask is for a $2 billion valuation, and a likely total fundraise of around $200 million, but plans are constantly evolving, which may result in a few changes over the coming weeks," a person aware of the development told Moneycontrol.

Kotak is running the fundraise process for Skyroot, the report added. The company is likely to close the round over the next two months and is keen to bring more domestic investors onto its cap table. Among Indian investors, 360 One Asset is evaluating an investment in Skyroot, while existing backers GIC and Temasek are also considering participating in the round.

Second Fundraise In Six Months

Once complete, this will be Skyroot's second fundraise in less than six months. The Hyderabad based company closed a $60 million funding round in May from Ram Shriram's Sherpalo, Singapore's sovereign wealth fund GIC, BlackRock, Arkam Ventures and others, at a valuation of $1.1 billion, earning it the "unicorn" tag.

The Vikram-1 launch followed Skyroot's Vikram-S suborbital mission in 2022, which made it the first private Indian startup to launch a rocket into space. With Vikram-1 validating its orbital launch capabilities, Skyroot is now preparing for a higher launch cadence and a pipeline of future missions that will need fresh capital.

Skyroot co-founder and chief executive Pawan Kumar Chandana had earlier told Moneycontrol, "We're already developing a reusable vehicle. It will be a much larger rocket, and that will come in a few years." His comments pointed to Skyroot's long term roadmap following the successful maiden orbital flight of Vikram-1 on July 18.