Team Indus had hired retired Isro scientists to guide its team to build a spacecraft and rover, but could not mobilise the Rs 2.2 billion to Rs 2.25 billion needed to hire a dedicated Polar Satellite Launch Vehicle (PSLV), Isro's workhorse rocket for what could have been the first private mission to the moon, people familiar with the development said.
With its inability to complete the mission by March, Team Indus will be out of the race for the GXLP prize. Rahul Narayan, founder and chief executive of Team Indus did not respond to calls or messages from Business Standard.
Start-ups in the space sector say mobilising funds is the biggest barrier in India as investors are hesitant to support such high-risk ventures and would prefer to focus on the tried and tested model of backing software start-ups.
Srinath Ravichandran, one of the promoters of AgniKul Cosmos — which is focused on building an orbital class nano satellite launch vehicle — says there are three fundamental obstacles to raise funds.
"An aerospace hardware start-up is not even in the mandate of most of the venture capital funds; getting foreign money from outside the country directly is complicated because of security issues and fear of sharing sensitive information outside the country and high networth individuals (HNIs) in India find it hard to comprehend that the start-ups have enough credibility to build a rocket," says Ravichandran.
This despite Isro's efforts to outsource satellite and rocket manufacturing to private firms. India's first private commercial Moon rover mission, which the Bengaluru start-up, called off since the latter could not mobilise funds for the project. This comes at a time, the Isro is planning to outsource the satellite and rocket-building completely to private sector.