India’s space sector is growing beyond rockets and satellite launches. A large part of the work now happens in the systems that help satellites move, adjust their orbit, avoid collisions, and complete their missions safely.

Navi Mumbai-based Manastu Space has received Rs. 116 crore in financial support from the Technology Development Board under the Department of Science and Technology. The support will help the startup develop indigenous green propulsion technology for satellites and launch vehicles.

The project is more than a funding milestone. It is aimed at making satellite propulsion safer, more practical, and less dependent on imported technology.

What Manastu Space is building

Manastu Space develops propulsion systems for satellites, launch vehicles, orbital transfer vehicles, and landers. In simple terms, propulsion is the system that gives a spacecraft the controlled push needed to move or change direction in space.

The company is working on a hydrogen peroxide-based green propellant with additives, along with engines, propellant feed systems, and a high-temperature ceramic catalyst. Traditional spacecraft fuels can create handling and safety challenges. Manastu’s approach is designed to reduce those operational difficulties while improving performance and cost efficiency.

Its system is planned for applications between 5 millinewtons and 300 newtons of thrust. That range covers small satellite needs as well as larger propulsion requirements.

For example, a small satellite may need a gentle push to correct its orbit. A stronger propulsion system may be needed for a launch vehicle or to move a satellite into a planned position. Manastu is trying to build one scalable platform for these different uses.

The story behind the startup

Manastu Space was founded in 2017 by Tushar Jadhav and Ashtesh Kumar, both IIT Bombay alumni.

Jadhav serves as co-founder and chief executive officer, while Kumar is the co-founder and chief technology officer.

The company began with a focus on replacing hazardous satellite fuels with safer alternatives. Over the years, it has moved from laboratory research to ground tests and in-space demonstrations.

According to the company, its green propulsion system was tested in space during the Adyanta mission on ISRO’s PSLV-C60 mission. That matters because space technology must prove that it can work outside controlled laboratory conditions.

How the Rs. 116 crore support will be used

The Rs. 116 crore support comes through the government’s Research Development and Innovation Fund. The total project cost is Rs. 277.63 crore.

This is not a standard grant. The support will be provided as optionally convertible debt, a form of financing that can function as debt and may be converted into equity under agreed terms.

The project will focus on further engineering, system integration, testing, and validation. Its goal is to move Manastu’s propulsion technology from Technology Readiness Level 6 to Level 9.

In plain language, this means taking an advanced working prototype toward a system that is proven for real operational use. The company wants to improve reliability and prepare the technology for wider use in satellites and launch vehicles.

Competition and the larger opportunity

Manastu Space operates in a developing Indian space-tech market that includes companies such as Bellatrix Aerospace, which also works on satellite propulsion technology.

The competition is not limited to building a powerful thruster. Companies need to prove safety, reliability, price, and the ability to manufacture at scale. Satellite makers also need systems that fit their missions without adding unnecessary weight or complexity.

Government support can help deep-tech companies handle the long testing cycles involved in space hardware. Unlike a consumer app, a propulsion system cannot be rushed into the market after a few software updates. It needs repeated testing and mission-level proof.

Facts Input- PIB, ET

India’s startup funding scene is seeing interest in businesses that combine technology with real-world industries. Two recent stories highlight this shift. Materials-science startup Whizzo is reportedly in talks to raise $25 million from Bertelsmann India Investments, while biotech company Peptris Technologies has secured Rs. 86 crore from the Technology Development Board for AI-based drug development.

The two companies work in very different sectors, but both are trying to solve difficult problems through science, technology and specialized research.

Whizzo aims to modernize technical textile manufacturing

Whizzo was founded in 2024 by Shrestha Kukreja, a former Zetwerk executive.

The Bengaluru-based company develops technical textiles used in areas such as agriculture, infrastructure, packaging, protective clothing and industrial applications.

Unlike regular fabrics used mainly for comfort or fashion, technical textiles are designed for a specific purpose. They may need to resist heat, water, chemicals, fire or heavy pressure. For example, a geotextile can be used in road construction, while a protective textile may be needed for industrial workers.

Whizzo follows a contract development and manufacturing model. In simple terms, it helps customers move from an early product idea to research, testing, prototypes and large-scale manufacturing through one connected system.

According to earlier reports, Whizzo had raised $15 million in a Series A round led by Fundamentum. The money was intended to support materials research, intellectual property development and the expansion of its manufacturing network across Asia. The company had also planned to increase exports and work with more small and medium-sized manufacturers.

The proposed $25 million fundraise from Bertelsmann India Investments could help Whizzo expand its research facilities, build more proprietary textile products and increase production capacity. However, the round is still in discussion, so the final amount, valuation and use of funds may change as per Moneycontrol.

Peptris is taking AI drug discovery towards clinical development

Peptris Technologies was founded in 2019 by Venkatasubramanian Narayanan, Shridhar Narayanan, Anand Budni and Amit Mahajan.

The company uses artificial intelligence and machine learning to identify and improve potential drug molecules.

Its platform can study large chemical datasets, suggest new molecules and predict important properties such as safety, activity and suitability for further testing. This can reduce the number of compounds that need to be tested manually in laboratories.

The Rs. 86 crore support, approximately $8.98 million, has been approved under the government’s Research Development and Innovation Fund. It will support Peptris’s three-year VIGOR programme, which has a total project cost of Rs. 172 crore.

The programme will work on four AI-discovered drug candidates linked to conditions including neuromuscular disorders, cancer, alopecia, neuropathy and Duchenne muscular dystrophy. The plan is to move these candidates from an early validated stage towards advanced preclinical research and preparation for clinical trials as reported in PIB.

This is not a traditional equity investment. The support is structured as optionally convertible debt, which means the funding is provided as debt but may be converted into company shares under agreed conditions.

Disclaimer

The Whizzo fundraise is reportedly under discussion and should not be treated as a completed funding round until officially confirmed. Funding structures, amounts and deployment plans may change. This article is for information only and is not investment advice.

India’s Rs. 1 lakh crore Research, Development and Innovation Fund is beginning to show early movement. The Technology Development Board has selected 22 startups to support, giving India’s deeptech ecosystem a much-needed confidence boost.

This is important because deeptech startups do not work like normal app-based startups. They often build in areas such as drones, robotics, biotechnology, advanced communication, space technology, clean energy, semiconductors and artificial intelligence. These ideas need more time, more testing and more patient funding.

The latest update suggests that the RDI Fund is not just a policy announcement anymore. It is now moving toward real support for companies that are trying to build hard technology from India.

What is the RDI Fund

The RDI Fund is a Rs. 1 lakh crore government-backed initiative aimed at supporting research, development and innovation in India. The idea is to help companies and startups working on advanced technologies that may take years to become commercially successful.

In simple words, it is meant to reduce the early financial risk for deeptech builders.

A normal consumer internet startup may launch a product, get users and show growth within months. But a deeptech startup building a drone platform, chip design, battery material or biotech solution may need years of research before it can sell at scale.

That is why patient capital matters. Patient capital means money that allows founders to build carefully without being forced to show quick returns.

Why selecting 22 startups matters

The selection of 22 startups by the Technology Development Board is an early sign that the RDI Fund is moving into action.

For founders, this kind of support can be useful in many ways. It can help them build prototypes, test products, hire technical teams, improve labs, file patents and prepare for commercial production.

For investors, it can reduce fear. Many private investors avoid deeptech because the risk is high and returns take longer. If government-backed funding supports the early stage, venture capital firms may become more willing to invest later.

For India, it supports a bigger goal – building technology at home instead of depending only on imports.

Why deeptech needs special support

Deeptech is difficult because the product is usually based on science, engineering or advanced research.

For example, a startup building an unmanned drone for agriculture or defence cannot simply launch an app and improve it later. It needs hardware testing, safety checks, field trials, regulatory approvals and manufacturing support.

A biotech company may need clinical research and lab validation. A battery startup may need material testing and factory-level production. A spacetech startup may need expensive equipment and years of technical development.

This is why deeptech funding cannot follow the same model as quick-growth software startups. The RDI Fund is trying to fill that gap.

What kind of sectors may benefit

The RDI Fund is expected to support startups and companies working in frontier technologies. These include artificial intelligence, quantum computing, robotics, drones, advanced communication, electronics, clean energy, biotechnology and other high-impact sectors.

These areas are important because they can shape future industries.

For example, AI can improve healthcare, finance, agriculture and manufacturing. Drones can help in mapping, delivery, disaster response and defence. Advanced batteries can support electric vehicles and renewable energy storage. Quantum technology may support future computing and secure communication.

If Indian startups can build strong products in these areas, the country can reduce dependence on foreign technology and create high-value jobs.

Role of the Technology Development Board

The Technology Development Board is playing an important role in the early rollout. Its job is to support technology development and help companies move from research to commercial use.

This is a key bridge. Many Indian research ideas remain stuck inside labs because they do not get enough support to become market-ready products. TDB’s involvement can help some of these ideas move closer to real customers.

The 22 selected startups are part of this larger push. The aim is not only to fund ideas, but to help serious technology companies grow into commercial businesses.

What this means for startups

For Indian deeptech startups, the RDI Fund can bring three major benefits.

1. First, it can improve access to capital. Deeptech founders often struggle to raise money because investors may not fully understand the technology or may worry about long timelines.
2. Second, it can improve credibility. A startup selected under a government-backed deeptech programme may find it easier to speak with customers, investors and partners.
3. Third, it can support long-term product development. Instead of rushing to show quick numbers, founders can focus on testing, safety, quality and intellectual property.

Still, funding alone will not solve every problem. Startups will also need access to labs, skilled engineers, manufacturing partners, buyers and global markets.

Competitors and global context

India is not alone in backing deeptech. Countries such as the US, China, Japan, South Korea, Israel and members of the European Union have supported advanced technology through public funding, defence programmes, university research and industrial policy.

The reason is simple. Deeptech is linked to national competitiveness.

Semiconductors, space systems, AI, advanced telecom, clean energy and biotechnology are not just startup sectors. They are also strategic areas for economic growth and national security.

India’s RDI Fund can help the country compete better, but execution will be the real test. The money must reach the right founders at the right time.

Risks and challenges

The RDI Fund has strong potential, but there are some clear risks.

1. The first risk is slow approval. Deeptech startups need timely funding. If the process becomes too slow, companies may lose momentum.
2. The second risk is poor selection. The fund must support startups with real technology depth, not just strong presentations.
3. The third risk is lack of follow-on funding. A startup may need several rounds of support before it becomes commercially strong.
4. The fourth risk is market access. Even if a startup builds good technology, it needs customers. Government departments, large companies and private buyers must be willing to test and buy Indian deeptech products.

Conclusion with key takeaways

The selection of 22 startups under the RDI Fund is a positive signal for India’s deeptech ecosystem. It shows that the Rs. 1 lakh crore initiative is starting to move from announcement to action.

The fund can help founders working on difficult but important technologies. It can also encourage private investors to look more seriously at deeptech.

But the real success will depend on speed, transparency, strong selection and long-term support. If done well, the RDI Fund can become one of India’s most important innovation programmes.

Key takeaways

1. The RDI Fund is a Rs. 1 lakh crore initiative for research, development and innovation.
2. The Technology Development Board has selected 22 startups to support.
3. The fund is aimed at deeptech areas such as AI, drones, robotics, biotech, quantum, clean energy and advanced communication.
4. Deeptech startups need patient capital because product development takes longer.
5. The initiative can reduce early risk and attract more private investment.
6. The main challenges are timely funding, strong selection and market access.

Facts Input- Hindu BusinessLine, ET, TOI