Hyderabad emerges as centre of gravity for spacetech startups with talent and ecosystem | Hyderabad News
Hyderabad: Hyderabad’s spacetech ecosystem appears to have hit escape velocity, with founders from Bengaluru, Delhi NCR, Uttar Pradesh, Ahmedabad and other parts of India gravitating to the city to build their space ventures.What began as a base for defence electronics, missiles, aerospace manufacturing and ISRO-linked suppliers is now emerging as a full-stack spacetech cluster, attracting early-stage companies working on reusable rockets, satellite platforms, propulsion systems, avionics and communications technologies.Founders said Hyderabad offers a rare combination of engineering talent, aerospace and defence heritage, prototyping support, vendors, academic institutions, testing access, relatively better urban infrastructure, lower operating friction and an active startup ecosystem anchored by Telangana govt-led institutions such as T-Hub, T-Works and research campuses. T-Hub alone has supported 105 spacetech startups so far, including 36 through three cohorts of its Orbit programme since 2024.Jainul Abedin, founder and CEO of Abyom SpaceTech and Defence, moved from Kushinagar in Uttar Pradesh to build next-generation reusable rockets and dual-use technologies. “Hyderabad was a natural choice because it offered a unique combination of aerospace and defence expertise, engineering talent, academic institutions, industrial capabilities, and a growing startup ecosystem,” he said.Abyom is based at BITS Pilani Hyderabad campus, where it says it has established India’s first premier commercial rocket engine testing facility and conducted India’s first integrated reusable rocket engine qualification test at about one-tenth of the typical investment. Its 20-member team works across propulsion, defence, aerospace engineering, electronics, testing and business development.“For us, moving to Hyderabad was ultimately about finding the right ecosystem to turn our vision into real hardware, and we found it here,” Abedin said. Spantrik, whose founders moved from Delhi and Ahmedabad in 2024, is developing a fully reusable rocket. It moved with support from T-Hub but now works out of T-Works with a seven-member team. It has received about ₹72 lakh in grants, including ₹20 lakh from Startup India Seed Fund through T-Hub.“Spantrik is all about making a fully reusable rocket from day one. Our simple goal is to make access to space as routine as aviation,” said co-founder and CEO Kajal Rajbhar.The company’s first tech demonstrator is planned as a 10-km reusable rocket flight, targeted within about 10 months after its ongoing funding round. Spantrik has tested subsystems including a restart-capable rocket engine, engine throttling capabilities required for landing, guidance systems and its own flight computer.Its rocket engine is being 3D printed using Inconel 718, while stainless steel is planned for structural elements to reduce costs and handle re-entry heat, said co-founder and CTO Hitendra Singh. For satellite companies, Hyderabad’s supplier and talent ecosystem is proving equally important. XDLINX Space Labs, which has a team of about 170 people, is preparing for volume production from its Madhapur facility.“Hyderabad has a strong and credible manufacturing supplier ecosystem, which is very important for XDLINX’s business,” said Rupesh Gandupalli, co-founder and CEO of XDLINX Space Labs. “The city also benefits from industry-friendly governance and active participation from the government. In addition, Hyderabad is one of the top choices for talent nationally.”For Sanyark Space, founded by former ISRO professionals, the move from Bengaluru was driven by talent density, lower friction and early-stage ecosystem support. The startup shifted in November last year and has grown to about 35 people after initially operating from T-Hub.Raghava Kundrapu, co-founder and CEO of Sanyark Space, said: “The defence talent pool and ISRO talent pool is already here, as much as you get in Bangalore.” He said Hyderabad also offers embedded systems, telecom, signal processing, navigation and 5G NTN talent because companies such as Qualcomm, Nvidia and Samsung have a presence nearby.Kundrapu said Bengaluru’s ecosystem has become saturated for early-stage founders who need affordable access to people, space and prototyping. Although Hyderabad still lags Bengaluru in funding — Tracxn’s recent spacetech report said Bengaluru startups have attracted $495 million compared with $215 million for Hyderabad — funding is easing.“Just last week, two VCs announced dedicated funds for deep tech and space at T-Hub,” said T-Hub CEO Kavikrut. “With tailwinds from the right capital, Hyderabad has the depth and resolve to support more such companies that can compete globally.”Investors too feel Hyderabad’s rise follows the logic of industrial clustering. Aniket Dharamshi, co-founder and managing partner (PE) at ValueQuest, said policy, talent and cost-effectiveness determine where sectors emerge. “Today Hyderabad is becoming the center of gravity for space,” he said, pointing to companies like Skyroot, Ananth and Dhruva located here.Arvind Ananthanarayanan, MD and fund manager, Tristar Fund at ValueQuest, said all the prospective funding targets they are in conversation with are based in Hyderabad, where the defence and missile base created a natural pathway into space.“A lot of India’s rocketry and missile activity has come out of Hyderabad. And now in Hyderabad you’re getting a lot of land, government is pushing incentives, and Hyderabad is cheaper,” he said. Kavikrut said India and Hyderabad’s spacetech startups are at an inflection point, with the city’s foundation built over years. “About 30% of ISRO’s components come from Hyderabad-based suppliers,” he said.“Hyderabad, which brings together talent, manufacturing capabilities, aerospace and defence heritage, investors and experienced experts, is well placed for the next phase. Skyroot now stands testimony to what is possible,” Kavikrut added. Yet founders also point to gaps. Rajbhar said while Hyderabad provides access to institutions, vendors and govt links, it lacks the deep technical mentorship that spacetech startups need.
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