India’s Digantara raises $50M for space-based missile defence tech

In a significant leap forward for India's space capabilities, Digantara, a burgeoning space surveillance startup, has successfully raised $50 million in its latest funding round. This infusion of capital marks a strategic shift for the company as it expands from space situational awareness into missile tracking, a move driven by the increasing demand from governments for advanced space-based defense systems. The Series B funding round, entirely equity-based, saw participation from new investors including 360 ONE Asset and SBI Investments from Japan, alongside serial entrepreneur Ronnie Screwvala. Existing investors such as Peak XV Partners and Kalaari Capital also contributed to this substantial round. With this recent funding, Digantara's total capital raised has now reached $64.5 million, following a $10 million Series A1 round completed over two years ago. As global missile launches and satellite interferences rise, governments are increasingly investing in space-based surveillance and early-warning systems that offer quicker detection capabilities than traditional ground-based radar. Digantara aims to capitalize on this trend by utilizing a combination of space and ground-based infrared sensors, paired with sophisticated software analytics. Founded in 2020 and based in Bengaluru, Digantara initially focused on tracking space debris that could pose threats to satellites. However, the startup has broadened its focus to include missile detection and tracking, leveraging the technologies developed for its space surveillance missions. In January, Digantara launched its first space surveillance satellite, SCOT (Space Camera for Object Tracking), aboard SpaceX’s Transporter-12 mission, facilitating space-to-space observation. In a bid to penetrate the U.S. defense market, the company opened an office in Colorado Springs, which has led to contracts with U.S. Space Command for analytics-as-a-service. Additionally, Digantara has been selected for the Missile Defense Agency’s SHIELD contract vehicle, aimed at supporting next-generation missile defense initiatives. "With our existing infrared sensors, we are now extending our capabilities into mid- and long-wave infrared domains," stated Anirudh Sharma, the founder and CEO of Digantara, in an interview. The company's operational strategy includes splitting its resources geographically; the U.S. team focuses on developing larger satellites suited to American defense needs while the Indian branch prioritizes analytics and space situational awareness. Digantara has secured contracts valued at approximately $25 million to date and is actively expanding its operations across India, Singapore, and the U.S., with plans to establish a presence in Europe by 2026. The startup boasts a 25,000-square-foot manufacturing facility in India that can produce five satellites simultaneously, with aspirations to enhance this capacity significantly. A memorandum of understanding with the Andhra Pradesh state government aims to develop a facility capable of manufacturing up to 30 satellites at once, projected to become operational next year. The company has already won government defense tenders in India and is finalizing administrative procedures to commence work. Over the next two years, Digantara plans to bolster its infrastructure with additional electro-optical and LiDAR satellites for enhanced surveillance and missile tracking, as well as expanding its network of ground observatories. Furthermore, the company is investigating the potential application of its LiDAR and laser technologies for future interceptor systems. In March, Digantara plans to launch another satellite via SpaceX, with additional launches slated for June and October, aiming to deploy a total of 15 satellites within the next two years. The recent funding will support these initiatives, with $7-$10 million allocated for U.S. expansion, $2-$3 million for European operations, and the remainder for scaling Indian manufacturing capabilities. Digantara has experienced over a tenfold revenue growth in the past two years, with ambitions to reach annual revenues between $25 to $30 million in the next 18 months, as defense contracts increase. The startup currently employs around 125 individuals, predominantly engineers.