The ride-hailing market has been the scene of intense competition over the last few years. While Ola and Uber battle for top spot, new players like InDrive and Namma Yatri have entered the market trying to lead a disruption with their innovative pricing models. However, no amount of discounting or inter city travel services has led to one clear winner. Perhaps the next logical step is to offer even further long-distance travel. How about international travel? How about intercontinental travel? Well, why not inter-planetary travel?
A Hyderabad-based startup is working on exactly that. Away from all the Ubers of the world, Skyroot Aerospace aims to provide an uber cool way for both man and machine to hitch a ride to outer space when space on the ground seems at a premium.
Space for a New Entrant
Skyroot Aerospace was founded in 2018 by former ISRO scientists Pawan Kumar Chandana and Naga Bharath Daka with the mission to ‘open space for all’, by pushing the boundaries of technology. In their own words they are, ‘working towards a future where space becomes part of our lives, and such a transition will transform humankind like never before’.
Space has long been the frontier of only government organisations such as NASA or ISRO. However, the emergence and the subsequent success of private players such as SpaceX has challenged that notion. The cost benefits provided by these companies has led to the opening up of the outer space market with national governments more willing to join forces with the private sector.
The space economy today stands at $630 billion. Fueled by these trends, a joint World Economic Forum and McKinsey report estimates that the market will reach $1.8 trillion by 2035, growing at a faster rate than global GDP. The report also states that over the last two decades, the number of satellites launched per year has grown at a rate of 50% while launch costs have fallen 10-fold. Costs are expected to continue to fall further which will enable more launches. While more launches would translate into space tourism opportunities at a relatively reasonable cost (eventually), there are more immediate benefits for the general public to look forward to.
96% of all spacecraft launched in 2022 were small satellites, up from 61% in 2013. These satellites are launched into low Earth orbit (LEO), which extends to an altitude of about 2,000 kilometers to form groups that work together to beam internet and communication services to Earth. These satellites are directly responsible for the quality of enabled technologies we use everyday such as GPS, navigation, timing, and more. These technologies also play a vital role in mitigating world challenges through disaster warning, climate monitoring, and enabling improved humanitarian response.
As space economy continues to grow and accessibility improves, we will see direct benefits across a variety of sectors.
- Supply chain and transportation sectors will benefit from more efficient and cost-effective logistics.
- Food and beverage companies will have better efficiency in last-mile delivery of perishable goods.
- Adjacent industries such as information technology, agriculture, insurance, and more will all benefit from increased cost efficiencies and environmental benefits provided by space-enabled technologies.
Small Satellites, Big Plans
Skyroot Aerospace has identified this lucrative small satellite market as the space to target. Organisations around the world typically send their satellites as part of ‘rideshare’ missions. For instance, a single SpaceX rocket last year launched 51 small satellites into orbit for multiple companies, working much like an inter-planetary Uber Pool. While these services have definite cost advantages for organisations sending their satellites, there are often disadvantages in terms of waiting time (more Uber Pool flashbacks), and getting dropped close to where you want to go rather than exactly where you want to go (the final painful Uber Pool flashback, promise).
Skyroot aims to address this gap in the market by providing customised launch services that allow companies to place their satellites right where they want. This service, at least initially, is going to come at a cost. While SpaceX allows organisation to place their payload into space at a cost of $6,000 per kilogram, Skyroot’s current pricing model provides the service at $20,000 per kilogram. Even though the startup is providing a unique solution, the 3X premium may put off clients in the early stages. However, the founders are hopeful that mass production and better technology will enable cost reductions down the line.
The founders’ optimism is not unfounded. India’s space programme is famously frugal, delivering the country’s Mars Orbiter Mission at a cost of $74 million while NASA’s Maven mission cost almost 10 times more at $670 million. India’s Chandrayaan-3 mission also cost around $74 million which was much lower than the budgets of Hollywood space movies such as Gravity, Interstellar, and The Martian.
With the Indian government being aggressive with its space ambitions, planning to have its own space station by 2035 and to put an Indian astronaut on the moon by 2040, Skyroot is well-positioned to take advantage.
In 2022, Skyroot had made history by launching Vikram-S which became the first private rocket to be launched in India and South Asia. On the back of this proof-of-concept, the startup has been working on its first commercial launch of Vikram-1 which is expected to take place later this year.
The company’s series of rockets are named Vikram in tribute to Dr. Vikram Sarabhai, founder of the Indian Space Program. Vikram-1, which is a three-stage solid-fuel based rocket recently completed the successful test-firing of its second stage. Skyroot says that despite the high initial prices, spots on Vikram-1 are fully booked, with a mix of domestic and international clients preparing to send their satellites into space.
Rooted in Sound Fundamentals
Skyroot’s ambitious plans start to look achievable when you look at the track record and pedigree of the team behind the startup.
Co-founder Pawan Kumar Chandana is an IIT Kharagpur alumnus who holds a master’s degree in thermal science and engineering. Before setting up Skyroot, he worked as a scientist in the rocket design centre for six years at ISRO. During this time, he worked on the GSLV Mk-III which is the largest rocket made in India so far, and won two innovation awards for his efforts. He believes that ‘rockets are the most fascinating machinery ever built by humans’ and that the space industry is in need of a new techno-economic makeover to open up a new frontier in space access and exploration.
Bharath Daka, the other co-founder who currently serves as the company’s COO is responsible for Avionics and GNC development at Skyroot. He holds a master’s degree in microelectronics and VLSI design from IIT Madras. Before Skyroot, he worked as a flight computer engineer at VSSC ISRO.
Beyond their own expertise, the co-founders have sought to rope in the best in the field to make their rocket wizardry a reality. The most prominent of their hires is Padma Shri awardee Gnanagandhi V. Known as the pioneer of cryogenic rocket science in India, he has spent more than 40 years of his life working in the field of propulsion. He is currently the Senior Vice President-Propulsion at Skyroot Aerospace, helping the startup quite literally reach for the stars.
Financials Yet to Take Flight
Skyroot is currently India’s most funded space startup having raised almost $100 million till date, with the latest being a Series C round in 2023. Its backers include Singapore sovereign wealth fund GIC and a small group of entrepreneurs including CureFit founders Mukesh Bansal and Ankit Nagor, among others. The startup is currently valued at an estimated $500 million.
Skyroot’s total revenue jumped over 3,000% from INR 20 lakh in FY 22 to INR 7.6 crore in FY 23 while its operating revenue rose to INR 44 lakh from INR 1.5 lakh during the same period. On the back of hefty R&D and infrastructure expenses however, Skyroot’s net loss more than doubled from INR 24 crore in FY 22 to INR 55 crore in FY 23. R&D alone accounts of 20% of Skyroot’s expenses. While it is bleeding the balance sheet now, such a strong focus on technological excellence bodes well for the startup’s future.
Aiming Sky High
Skyroot Aerospace has emerged as a trailblazer in India’s private space sector, demonstrating the country’s growing capabilities in space exploration. The startup’s innovative approach, focus on affordability, and commitment to indigenous technology has positioned it right on the launchpad to success.
Having already created history with more awaiting on the brink, Skyroot’s technical excellence is there for all to see. This is matched up the ruthless ambitions of its founders with Pawan Kumar Chandana boldly stating, “We want to become globally [one of the] top three launch companies.” During the same conversation, he added, “My fascination for rockets has become an obsession.”
As Skyroot continues to expand its operations and develop new launch vehicles, this obsession is set to open new frontiers in the global space industry and allow organisations to ditch the Uber Pool of satellite launches in favour of customised space travel solutions.
____________
Written By: NIMESH BANSAL
