Skyroot Aerospace, an Indian space technology startup, reported a standalone net loss of INR 55.2 Crores in the financial year 2022-23 (FY23), a significant increase from INR 23.7 Crores in the previous fiscal year. This widening loss was primarily attributed to a substantial rise in expenses.
However, Skyroot Aerospace’s operating revenue for FY23 increased to INR 44 Lakhs compared to INR 1.5 Lakhs in the previous year. When including interest income, the company’s total revenue surged by more than 3,000% to INR 7.6 Crores from INR 20 Lakhs in FY22.
Skyroot Aerospace, founded in 2018 by Pawan Kumar Chandana and Naga Bharath Daka, specializes in building space launch vehicles and achieved the distinction of becoming the first private Indian company to launch a rocket into space in November 2022.
The commercial space technology industry in India is still in its early stages, with startups like Skyroot primarily focused on research and development, which constitutes a significant portion of their expenses. In FY23, Skyroot invested INR 12.4 Crores in R&D, an increase from INR 9.1 Crores in FY22, including a grant of INR 69 Lakhs received during FY23. R&D expenses accounted for almost 20% of the startup’s total expenses, which amounted to INR 62.9 Crores in FY23, compared to INR 23.9 Crores in FY22.
Employee benefit expenses for Skyroot more than doubled to INR 16.5 Crores in FY23 from nearly INR 8 Crores in FY22. Additionally, the company incurred INR 15.7 Crores in professional and consultancy charges in FY23, marking an 18-fold increase year-on-year (YoY).
At the end of FY23, Skyroot’s cash balance was INR 14.2 Crores, down from INR 53.3 Crores a year earlier. The company had previously secured $51 million (over INR 400 Crores) in its Series B funding round, led by Singapore’s sovereign fund in September 2022, and counts investors such as WorldQuant Ventures, Graph Ventures, and Meraki Labs among its backers.
The Indian spacetech sector has seen a growing number of startups, aiming to capture a share of the estimated $731.8 billion global spacetech market by 2030, projected to grow at a CAGR of 7.5% from 2023 to 2030. In recent years, more than 150 spacetech startups in India received over $285 million in funding between 2014 and 2023, according to a report by Inc42.
