Mumbai-based spacetech startup Manastu Space has raised $3 million in a round led by a venture capital (VC) firm, Capital-A. Existing investors such as Capital 2B, Indian Angel Network (IAN), E2MC, the Bhagnani Family Office, and Jeet Chandan, among others, also participated in the round.

The company plans to use the fresh funding to enable commercial deployment of its green propulsion and debris-avoidance solutions. Manastu Space test-fired its green propulsion system VYOM 2U onboard PSLV C-60 in space in December last year. The green propulsion system used by the company is a non-toxic alternative to chemical and electric propulsion systems.

“This funding is mainly geared towards completing and reaching Technology Readiness Level 9 (TRL-9) from TRL-8. TRL-9 is where we have long-term flight heritage for our propulsion system in the relevant environment,” founder Tushar Jadhav told ET.

TLR-9 refers to NASA’s Technologies Readiness Level scale, where the technology showcases its operational environment through successful mission completion.

Founded in 2017 by Jadhav and Ashtesh Kumar, Manastu Space, in its latest funding round, also plans to support key technologies for in-orbit servicing, including satellite refuelling, deorbiting, and mission life extension. The company said it plans to expand to the United States, Europe, and Asia, engaging with satellite original equipment manufacturers (OEMs), constellation operators, and service integrators.

The company has made contracts with clients, such as the Defence Research and Development Organisation (DRDO) and French-based company Latitude, Innovations for Defence Excellence (iDEX), among others, in building its products, it said.

This comes at a time when India’s space sector is poised to reach $40 billion by 2040, as per reports. The spacetech startup ecosystem this year reported multiple fundings, including the recent funding of Xovian Aerospace, which raised $2.5 million in a round led by Piper Serica and Turbostart.

“Their successful in-orbit demonstration gives them a clear advantage, and the timing is right as demand grows for sustainable and efficient space systems. This is a team with clarity of purpose and strong technical grounding,” said Ankit Kedia, founder of Capital-A.