Source: Entrackr
Mumbai, August 12th, 2025 – Manastu Space, a spacetech startup out of Mumbai, has raised $3 million in financing from Capital-A. In addition to Capital-A, the funding round included existing investors Capital 2B, Indian Angel Network (IAN), E2MC, Bhagnani Family Office and Jeet Chandan.
The startup will use the funds to commercially launch its green propulsion and debris-avoidance products, which aim to make satellite operations safer, cleaner, and more efficient for all users. The company intends to use the funds to support international expansion, too.
Manastu Space is a space tech company, founded in 2017, by Tushar Jadhav, and Ashtesh Kumar, developing sustainable propulsion systems that aim to replace the traditional chemical-based propulsion systems that typically tend to utilize toxic fuels, which are harmful to both humans and the environment.
In December 2022, Manastu completed testing its VYOM 2U green propulsion system on the PSLV C-60 rocket. VYOM 2U provides a non-toxic alternative to chemical and electric propulsion systems and assists satellites in maneuvering in orbit while avoiding space debris.
The startup’s technology is presently at Technology Readiness Level 8 (TRL-8), which indicates flight-tested. The next target goal is to reach TRL-9, which would indicate the technology has been proven to work for long-term operations in space.
Designing New In-Orbit Services
In addition to propulsion, Manastu Space is also developing in-orbit servicing capabilities, such as satellite refuelling, deorbiting obsolete satellites, and extending the life of current space missions. Such services could help combat space debris and provide more economical satellite missions.
Globally, those are big Markets.
With the fresh financing, Manastu Space will be looking to enter the United States, Europe, and Asia. Their plans involve extensive working relationships with satellite manufacturers, constellation operators, and systems integrators in those regions.
Manastu Space is already heavily involved in the region with high-profile clients and partners like the Defence Research and Development Organisation (DRDO), an aerospace company, Latitude in France, and the government funding program Innovations for Defence Excellence (iDEX), focusing on defence innovations.
A burgeoning industry
India’s space industry is expected to be worth $40 billion by 2040, according to market research. The following are all venture capitalists funding new space tech companies. In 2025, multiple startups—such as Xovian Aerospace, Omspace, Atrophel, and Inbound Aerospace—raised funding.
Manastu’s recent successful test flights and focus on sustainable space missions have generated a lot of interest from investors. Ankit Kedia, founder of Capital-A, stated the company’s in-orbit demonstration puts it in a strong position in the market.
