Image source: ReutersBENGALURU: India’s private space sector has attracted USD 113 million (about Rs 970 crore) in equity funding so far in 2026, taking cumulative investments in the country’s SpaceTech startups to $871 million since 2021, according to a new report by Tracxn.The report says the sector has seen 241 funding rounds over the past five-and-a-half years, with 72 startups securing investments. Funding hit a record $200 million in 2025 after rising steadily from $43 million in 2021, before moderating to $72 million in 2024 amid a slowdown in venture capital investments globally. This year’s funding has already crossed $113 million, suggesting investor interest remains strong.India today has 285 SpaceTech startups, of which 274 are active. While only about a quarter have raised external capital, the report says the sector is steadily moving beyond the early startup phase as companies begin attracting larger and later-stage investments.The investment landscape, however, remains concentrated. The 10 most-funded startups, led by Skyroot Aerospace, Pixxel, AgniKul, Digantara, Bellatrix, SatSure, EtherealX, Dhruva Space, GalaxEye and TeamIndus, have together raised more than $548 million, accounting for nearly two-thirds of all equity funding in the sector.Geographically too, investment is clustered. Bengaluru has emerged as the country’s SpaceTech hub, attracting $495 million, or 57% of all funding, followed by Hyderabad with $205 million and Chennai with $80 million.The report says investment patterns are also changing. While seed funding continues to support new entrants, late-stage funding has begun to emerge, indicating that a growing number of Indian SpaceTech firms are progressing towards commercial scale.Even so, raising capital remains a challenge. Nearly three-fourths of India’s SpaceTech startups are yet to secure equity funding. The report expects consolidation in the sector over the next 12 to 18 months, with companies that fail to attract follow-on investments likely to merge, pivot or wind down, while stronger players expand into launch services, satellite manufacturing and downstream applications.