InspeCity inches closer to orbit with Rs 100 Cr funding boost

What happens when a satellite breaks down in space while travelling at an incredible speed of 27,000 km/h? This is a key challenge satellite operators face in Earth’s orbit, where multi-million-dollar assets can run out of fuel or suffer critical failures.

Spacetech startup InspeCity is trying to solve this problem with its service offerings, and it has just secured a big boost to do so.

The Thane-based firm has raised a pre-Series A funding of Rs 100 crore to quickly move from laboratory research to active deployment in space. The funding round was led by VC firm Speciale Invest and prominent technology investor Ashish Kacholia, with participation from Antler Elevate, Antler India, Manish Gandhi, Shastra VC, and others.

What exactly is InspeCity working on? 

The startup aims to be an ‘in-orbit service provider’ by servicing, repairing, and refuelling satellites while they are still in orbit and safely removing space debris.

Arindrajit Chowdhury, Co-founder and Chief Executive Officer of InspeCity, says the first portion of the newly raised funds will match government grants for active projects under India’s Innovations for Defence Excellence (iDEX) programme.

The second portion is designated for building and launching its first series of in-orbit missions.

The final part will be used to strengthen the startup’s team and establish a new work-and-research facility, as InspeCity moves from a research-focused laboratory to an execution-led commercial enterprise.

InspeCity was founded in 2022 by Chowdhury, a professor at Indian Institute of Technology Bombay (IIT Bombay) and an alumnus of IIT Kharagpur, and Tausif Shaikh, an alumnus of IIT Bombay.

Chowdhury’s academic background influenced his initial approach to building InspeCity, as he set off on the journey with deep appreciation for technical rigour along with some trepidation.

In an interview to YourStory, Chowdhury recalls his academic days when writing research proposals for government agencies often felt gruelling due to endless checks and balances. This experience taught him patience and administrative persistence, which proved invaluable when transitioning InspeCity into a private business.

He is extremely passionate about the human element in deeptech development. He views systems engineering as not just a technical exercise but also as a profound human challenge. To him, the process of aligning exceptionally talented and highly diverse minds to work towards a singular goal is a beautiful puzzle.

Opportunities in a crowded orbit

The commercial space industry is experiencing an unprecedented boom, but this has also created a massive logistical problem. The number of active satellites has increased dramatically in recent times, which has, in tandem, led to a rise in hazardous space debris.

Spinning, vibrating defunct satellites and fragments present a constant threat of collisions that could destroy active space infrastructure. However, a congested orbit is also a significant business opportunity for ‘in-space servicing, assembly, and manufacturing’.

Instead of constantly launching replacement satellites and adding to the orbital clutter, the company wants to help satellite operators extend the operational lifespans of their existing assets, while reducing costs.

The startup is building robotic and propulsion systems to service satellites in orbit and also reduce space debris.

Chowdhury says, “When we started InspeCity, Earth 2.0 was deliberately a long-term thesis. We asked: if meaningful economic activity moves beyond Earth, what machines and infrastructure must exist first? That question led us to VEDA and to the propulsion, sensing, autonomy, robotics, docking, and refuelling technologies we have spent the last few years building.”

VEDA—Vehicle for Life Extension and De-orbiting Activities—is an autonomous in-orbit servicing platform developed by InspeCity.

Vishesh Rajaram, Managing Partner at Speciale Invest, supporting this view, explains, “In-space servicing is one of the few categories where the technical moat and the commercial need arrive at the same time. InspeCity has built the full stack propulsion, robotics and RPOD (Rendezvous, Proximity Operations, and Docking) in-house, which is rare anywhere in the world and rarer still at this cost base (cheaper than global offerings).”

Vertically integrated tech stack

The company has developed a suite of proprietary building blocks, including GITA (Green Impulse Transmitter), a refuellable propulsion system designed to move satellites with high thrust and minimal environmental impact.

For navigation, the company uses CHAKSU, a comprehensive sensor unit powered by AI that tracks objects in real-time to enable precise docking manoeuvres.

The physical work of repair and maintenance is performed by RAMA, a remotely actuated robotic arm that closely mimics the movements and freedom of a human hand.

These components come together on VEDA, which serves as the primary transport and servicing vessel.

To validate these technologies, InspeCity is planning four sequential, back-to-back missions.

The first mission, RIG-E (Remote Inspection and Guidance), involves mapping flight paths to locate specific targets. The subsequent missions, RIG-X, VEDA-X, and SAMA-X (Space Based Maintenance Asset), will progressively test propulsion, robotic manipulation, and cooperative docking.

In cooperative docking, two spacecraft actively work together to align, approach, and connect in orbit.

Chowdhury notes that this staged approach allows the company to learn from each flight and build confidence incrementally.

Growth and partnerships

Global partnerships is a key growth strategy for InspeCity.

Traditional methods of physically capturing rotating objects in space are both difficult and dangerous. So, InspeCity has signed a memorandum of understanding with Japanese firm Orbital Lasers to combine space lasers with robotic arms for removal of debris without direct, physical contact.

The company is also collaborating with hardware ecosystems in Taiwan.

In April 2023, InspeCity raised a pre-seed round of $1.5 million, co-led by Speciale Invest, Antler India, and Veda VC. This was followed by a $5.6-million seed round in May last year, led by Kacholia.

“Prof Arin and the InspeCity team have set out to solve some of the most complex challenges in the space sector. Their success across multiple iDEX challenges and government grants is a strong validation of both the team’s technological capabilities and the potential of their vision,” says Kacholia.

InspeCity’s business model involves direct product sales and specialised orbital services. The company plans to commercialise its GITA propulsion systems and RIG systems to other satellite operators while offering bespoke servicing contracts.

In the long term, the company envisions building actual “space cities” in orbit to tackle resource scarcity on Earth.

Looking ahead, Chowdhury is pragmatic about fundraising and commercialisation prospects. He doesn’t want to rush into a Series A round and would rather let his team focus on technical milestones.

“I’d put the timeline (for fundraising) based upon what the team can show me. If a good deal comes along, definitely we will take the money, but I’m waiting for proof points,” he says.