Manastu Space, a Mumbai-based spacetech startup, has raised USD 3 million in an extended Series A round led by venture capital firm Capital-A. Existing investors Capital 2B, Indian Angel Network (IAN), E2MC, the Bhagnani family office, Jeet Chandan, among others, also participated. Lodha Capital acted as the transaction facilitator.
The funding will be used for the commercial rollout of Manastu’s green propulsion and debris-avoidance technologies, the development of in-orbit servicing capabilities including satellite refuelling, deorbiting, and mission life extension, and the expansion of operations in the United States, Europe, and Asia. The company is also targeting partnerships with satellite OEMs, constellation operators, and service integrators.
Founded in 2017 by IIT Bombay alumni Tushar Jadhav and Ashtesh Kumar, Manastu is developing MS-289, a proprietary hydrogen-peroxide-based propellant with additives, along with a high-temperature catalyst for combustion. According to the company, MS-289 delivers 50 percent higher performance than hydrazine-based systems and reduces operational costs by 60 percent through simpler handling and transport. Hydrazine, the current industry standard, is carcinogenic and highly toxic, with costly safety requirements.
Manastu’s VYOM 2U green propulsion system was successfully demonstrated in orbit aboard ISRO’s PSLV-C60 mission on December 30 2024 via the POEM-4 platform. The company says the test advanced the system to Technology Readiness Level (TRL)-8, with TRL-9 targeted for long-duration missions.
To address the growing problem of space debris, the company is also developing autonomous collision-avoidance systems powered by artificial intelligence and machine learning. These systems aim to enable real-time trajectory adjustments, adaptive thrust control, and predictive fuel management without constant human intervention, which is critical for managing large satellite constellations. Co-founder Ashtesh Kumar has stated the goal is to enable “autonomous collision avoidance and satellite refuelling in space so that we can reuse the satellites.”
Investor Ankit Kedia, Founder and Lead Investor at Capital-A, said Manastu offers a technically sound and commercially scalable solution to a specific challenge in satellite propulsion, and that its successful in-orbit demonstration provides a competitive edge.
India’s private space sector is expected to grow sharply, with IN-SPACe projecting an expansion from USD 8 billion in 2022 to USD 40 billion by 2040. A separate Inc42 report values India’s overall space economy at USD 77 billion by 2030. The Indian government has encouraged this growth through policy reforms, the creation of IN-SPACe, and the announcement of an INR 10 billion spacetech fund.