Upsparks Capital’s early-stage niche; Dhruva Space’s sky-high ambitions

Hello,

The AI wave is flooding the markets. And with it, there’s a new clutch of hedge funds that are betting on which industries are being swept along, and which of them will be left behind. 

Thematic funds are seizing the opportunity to cash in on the AI frenzy, with several managing assets worth billions. Even veteran hedge-fund names, like Point72 Asset Management founder Steve Cohen, are throwing their hats in the ring. Cohen’s AI-focused hedge fund Turion is named after Alan Turing, the father of theoretical computer science. 

Assets at the fund now exceed $2 billion, the Wall Street Journal reported. 

In a similar trend, legacy companies, especially those in India’s IT sector, are going all in on AI, rolling out tools to customers from banks to sporting bodies, even as the technology threatens to slash client spending in the near term.

The sector, led by giants such as Infosys, Wipro and Tata Consultancy Services (TCS), has seen growth in the low single digits for the past two years, according to HSBC. 

It attributed the sluggishness to economic uncertainty, competition from corporate in-house global capability centres across India, as well as ambiguity over the impact of GenAI.

Lastly, check out this unique method zookeepers in Prague are using to parent baby vultures!

In today’s newsletter, we will talk about 

• Upsparks Capital’s early-stage niche
• Dhruva Space’s sky-high ambitions

Here’s your trivia for today: What was the first carbonated soft drink to be consumed in outer space?

Interview

Upsparks Capital’s early-stage niche

Bengaluru-based proprietary venture capital firm Upsparks Capital has quietly emerged as a significant force in India’s early-stage startup ecosystem. 

Since 2020, the proprietary fund has deployed Rs 57 crore across 65 investments, maintaining a sharp filter with an acceptance rate below 3% of evaluated startups, said a top executive in an interaction with YourStory.

Operational support:

• The firm's portfolio includes breakout companies such as marketing tech firm Pixis, Flam, a mixed reality platform, AI startup Smallest.ai, and space-tech venture GalaxEye. Of its investments, 27 portfolio companies have secured follow-on funding totalling Rs 4,500 crore.
• Upsparks typically invests between Rs 1 crore and Rs 2 crore at the pre-seed and seed stages. The team reviews more than 150 pitch decks each month and moves quickly, often making investment decisions within 10 days of the first meeting.
• While Upsparks maintains areas of focus such as AI infrastructure, fintech rails, and global software, it also leaves room for conviction-led outliers. The firm typically targets 7 to 10 core investments per year and plans to add 25 new startups over the next 24 to 36 months.

Spacetech

Dhruva Space’s sky-high ambitions

When Sanjay Nekkanti started building satellites at age 19, the private space sector in India was close to non-existent.

Today, as Founder and CEO of Hyderabad-based Dhruva Space, Nekkanti is preparing to open one of the largest satellite mass production facilities in India — a 280,000 sq. ft. facility designed not only to accelerate Dhruva’s next phase of growth, but also to serve as a key enabler for India’s growing space ecosystem.

Expanding orbits:

• Dhruva Space has built a broad portfolio covering modular satellite platforms (P-DoT, P-30, P-Nu), the DSOD family of orbital deployers, DSOL communications systems, launch and mission integration services, ground-as-a-service offerings, and commercial imagery and analytics.
• The startup’s growth trajectory has been powered by a combination of institutional investment, a significant Series A funding round of about Rs 123 crore, and targeted government grants to advance space-grade manufacturing capabilities.
• Nekkanti plans to scale up offerings by developing satellites in the 500 kg class. The company has also had export wins in Australia, the UAE, and Europe, and collaborations like one with French firm Sodern, whose payload will fly aboard a Dhruva-built satellite in 2026.

News & updates

• Departure: Four astronauts from NASA's Crew-10 mission departed the International Space Station on Friday aboard a SpaceX Dragon capsule, heading for a splashdown off the U.S. West Coast on Saturday morning after a five-month crew rotation mission at the orbiting lab.
• Easing controls: China wants the US to ease export controls on a critical component for artificial intelligence chips as part of a trade deal ahead of a possible summit between President Donald Trump and President Xi Jinping.

What you should watch out for

• US and India CPI data: The coming week will see the markets focused on India and the US’ CPI (Consumer Price Index). India's July inflation is expected to further decelerate to 1.8% from 2.10% in the previous month. US CPI, on a year-on-year basis, may come to 2.8% in July compared to 2.7% in June.
• IPOs: The bourses are set for another busy week, with six IPOs opening for subscription and collectively aiming to raise about Rs 1,938 crore through a mix of mainboard and SME offerings. The line-up includes the BlueStone Jewellery & Lifestyle IPO, along with plays from the retail, infrastructure, and mining and natural resources sectors.

What was the first carbonated soft drink to be consumed in outer space?

Answer: Coca-Cola.

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