India-based spacetech startup SatLeo Labs has raised US$3.3 million in a pre-seed funding round led by Merak Ventures.

Other participants include Huddle Ventures, GVFL, Java Capital, IIMA Ventures, PointOne Capital, and angel investors Manish Gandhi and Dheer Baldua.

The funding will support the development of SatLeo Labs’ thermal imaging technology for Earth observation from Low Earth Orbit.

The capital will be used to build the company’s proprietary imaging payload, conduct feasibility studies, and obtain regulatory approvals.

SatLeo Labs has also secured over US$25 million in Letters of Intent from potential clients.

SatLeo Labs plans to launch its first thermal imaging satellite soon and aims to strengthen India’s position in the global commercial space technology sector.

🔗 Source: SatLeo Labs

🧠 Food for thought

1️⃣ India’s ambitious space policy reforms are creating a fertile ground for startups

SatLeo Labs’ funding comes amid India’s transformative space sector reforms designed to increase private participation and boost the country’s global market position.

The Indian government has established IN-SPACe specifically to streamline authorizations for private space activities and facilitate access to ISRO facilities, creating clearer pathways for startups like SatLeo Labs 1.

Beyond regulatory frameworks, the government has committed substantial financial support, approving a $119 million fund for space startups despite the sector experiencing a 55% funding decline in 2024 1.

India has set an ambitious target to increase its share of the global commercial space market from just 2% currently to 10% by 2030, signaling strong government backing for companies developing indigenous space capabilities 2.

The space tech ecosystem in India has rapidly expanded to include over 450 micro, small, and medium-sized enterprises, more than 50 large companies, and approximately 200 startups, creating a robust network that new ventures like SatLeo can leverage 2.

Recent liberalization of FDI norms in the space sector has created more opportunities for international investment and collaboration, particularly benefiting early-stage companies seeking capital 2.

2️⃣ Thermal imaging satellites are becoming critical tools in climate resilience