Manastu Space raises Rs 22 crore after Rs 116 crore government green-propulsion backing

Manastu Space, a Mumbai-based space technology start-up that makes cleaner propulsion systems for satellites, has raised Rs 22 crore (about $2.3 million) in an extension of its Series A funding round, it was reported on 30 October 2026. The investors are Gandhi Securities and Investments, the Thacker Legacy Trusts and individual angel investors. The raise comes days after the Technology Development Board (TDB) of the Department of Science and Technology signed an agreement to provide Rs 116 crore to the company under the government's Research Development and Innovation (RDI) Fund.

Satellites need small engines, called thrusters, to reach their final orbit, keep their position and avoid collisions. Many of these thrusters use hydrazine, a fuel that works well but is highly toxic and needs special handling, which adds cost and risk on the ground. Manastu's approach uses hydrogen peroxide-based fuel, which the company describes as safer to handle. That is why the industry calls it "green" propulsion. The claim of lower cost and easier handling is the company's; independent long-term performance data will come only from more flights.

The government backing is significant because of where it comes from. The RDI Fund is meant to help Indian companies carry deep-technology research all the way to commercial products, a stage where private investors are often cautious because results take years. Optionally convertible debentures let the TDB lend money now with the option of becoming a shareholder later, so the state shares in the upside if the company succeeds. The TDB has used the same fund for other space firms; earlier, it agreed Rs 200 crore of support for Agnikul Cosmos's reusable Agnibaan rocket.

For India's space start-up sector, the two deals together show a pattern: private money arriving in smaller amounts, alongside much larger, patient public funding for hardware that must be proven in orbit.

Short-term: The new money gives Manastu funds to build and test more flight units and to scale manufacturing, while the TDB agreement sets milestones for moving the technology to mission-proven readiness.

Long-term: If the thrusters prove reliable over many missions, Indian satellite makers would have a domestic option for propulsion, and the company could compete for orders abroad.

Who is affected: Indian satellite manufacturers and launch customers, investors in spacetech, engineers and students looking for jobs in the space sector, and the government agencies that fund deep-technology research.

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