India’s rapidly growing spacetech sector has received another boost as Chennai-based startup Dream Aerospace Technologies has raised ₹10 crore in a Pre-Series A funding round. The investment was led by 247VC and Campus Angels Network, with participation from Chandigarh Angels Network. The fresh capital is expected to help the company scale production, strengthen research capabilities, and prepare for its first in-orbit technology demonstration.
Founded in 2022 by Hari Krishnan KJ, a PhD candidate at IIT Kanpur, and aerospace engineer Rogith S, Dream Aerospace has emerged as one of the promising names in India’s deeptech and space innovation ecosystem. The startup is focused on developing indigenous and environmentally friendly propulsion systems that can support the growing demand for satellite launches and space missions.
Dream Aerospace Bets Big on Green Propulsion Systems
Dream Aerospace is best known for its ATOM Green Monopropellant Thruster, a propulsion system that uses Hydroxylammonium Nitrate (HAN)-based fuel instead of conventional hydrazine. Hydrazine has long been used in spacecraft propulsion but is known for its highly toxic nature and handling risks.
According to the company, the HAN-based technology delivers nearly 30% better performance while significantly reducing environmental impact and operational hazards. This makes it a compelling alternative as the global space industry increasingly shifts towards sustainable technologies.
The startup has also developed CUBEHOOD, a plug-and-play propulsion module designed for CubeSats ranging from 1U to 26U and beyond. CubeSats have become increasingly popular for scientific research, earth observation, communication, and defence applications due to their compact size and lower deployment costs.
With the latest funding, Dream Aerospace plans to increase manufacturing capacity to produce 40 to 50 propulsion units annually. The company is also preparing for the first in-orbit demonstration of the CUBEHOOD module, a key milestone expected to validate its technology in space conditions.
The startup has already received strong institutional backing. Earlier in January 2025, it raised ₹3 crore in a pre-seed round led by Inflection Point Ventures. It has also secured a ₹1 crore grant from IN-SPACe under the Announcements of Opportunity scheme to support work on autonomous docking and in-orbit refuelling technologies.
IIT Kanpur Ecosystem Continues to Drive Deeptech Innovation
Dream Aerospace’s growth story reflects the increasing role of IIT Kanpur in nurturing deeptech startups. The company was incubated at the Startup Incubation and Innovation Centre (SIIC) of IIT Kanpur, which has become a major launchpad for emerging technology ventures.
Recently, Dhanavritti Ventures, a venture capital fund backed by IIT Kanpur and its alumni network, received formal registration from the Securities and Exchange Board of India (SEBI) as a Category I Alternative Investment Fund. The development marks a significant milestone as it is the first SEBI-registered venture capital fund directly sponsored by an IIT and the first of its kind in Uttar Pradesh.
The fund aims to support startups working in strategic sectors such as aerospace, artificial intelligence, semiconductors, robotics, battery technology, and cybersecurity. Industry experts believe such initiatives will improve access to early-stage capital for deeptech founders who often face long product development cycles.
SIIC has also expanded its influence through partnerships and startup-focused programmes. Earlier this year, it played a key role in facilitating investor interactions at TiECon UP 2026, where multiple deeptech startups showcased their technologies to venture capital firms and angel investors.
India’s Spacetech Sector Gains Momentum with Policy Support
Dream Aerospace’s latest funding round comes at a time when India’s spacetech ecosystem is witnessing unprecedented momentum. The government has introduced several initiatives aimed at expanding the country’s space economy and encouraging private sector participation.
One of the most significant measures is the ₹1,000 crore Antariksh Venture Capital Fund, which is expected to support nearly 40 spacetech startups over the coming years. Managed by SIDBI Venture Capital Limited, the fund will provide growth-stage financing to promising companies developing next-generation space technologies.
In addition, IN-SPACe has launched the ₹500 crore Technology Adoption Fund to help startups commercialise innovative solutions. The programme supports projects across satellite technologies, launch systems, and advanced space applications.
The broader ecosystem is also seeing major developments from companies such as Agnikul Cosmos, Skyroot Aerospace, and Bellatrix Aerospace, all of which are pushing forward indigenous launch and propulsion technologies.
Against this backdrop, Dream Aerospace’s latest funding reflects growing investor confidence in India’s homegrown spacetech capabilities. As the startup moves towards commercial deployment and in-orbit testing, it could play an important role in strengthening India’s position in the global space technology market while advancing the country’s vision of sustainable and self-reliant space exploration.