Skyroot Aerospace achieved unicorn status this week after raising $60 million at a $1.1 billion pre-money valuation, making it India’s first space technology startup to cross the billion-dollar threshold. The Hyderabad-based rocket manufacturer secured the funding ahead of its planned orbital launch in June, which would mark the first orbital mission by an Indian private company.
According to TechCrunch, the round included approximately $50 million in primary equity co-led by Sherpalo Ventures and GIC, plus $10 million in structured debt from BlackRock-affiliated funds. The valuation more than doubles Skyroot’s previous $500 million assessment from 2023.
Orbital Launch Preparations Accelerate
Skyroot’s Vikram-1 rocket was transported to India’s Sriharikota spaceport in April and is currently undergoing flight qualification tests. The startup, founded in 2018 by former Indian Space Research Organization engineers Pawan Kumar Chandana and Naga Bharath Daka, designed the Vikram-1 to carry payloads up to 350 kilograms into low Earth orbit.
The company positions itself alongside U.S. competitors like Rocket Lab and Firefly Aerospace in the small satellite launch market. Ram Shriram, founder of Sherpalo Ventures and Alphabet board member, will join Skyroot’s board as part of the investment.
Skyroot reported strong demand for dedicated small satellite launches, with roughly one-third coming from Indian customers and two-thirds from international clients. The company declined to disclose specific revenue figures or customer backlog details.
Indian AI Unicorn Pivots Strategy
While Skyroot ascended to unicorn status, India’s first GenAI unicorn Krutrim made a strategic pivot from AI model development to cloud services. The Bengaluru-based startup, valued at $1 billion after raising $50 million in January 2024, announced the shift following what it described as a “business overhaul” in late 2025.
According to TechCrunch, Krutrim reallocated capital and talent while pausing chip design efforts. The move comes after more than 200 layoffs across multiple rounds and the removal of its Kruti AI assistant app from app stores in April.
Founded by Bhavish Aggarwal, who also leads ride-hailing firm Ola and EV maker Ola Electric, Krutrim initially aimed to build domestic alternatives to models from OpenAI, Anthropic, and other global players. The startup generated approximately ₹3 billion ($31.52 million) in revenue for fiscal year 2026, representing a threefold increase from the previous year.
European Startup Ecosystem Gains Attention
European venture capital continues identifying promising startups beyond established unicorns like Mistral AI. A recent TechCrunch survey of prominent European VCs highlighted 21 startups worth watching, including Prague-based BottleCap AI and defense tech company Alta Ares.
The survey methodology asked investors to recommend one portfolio company and one external startup, reflecting both investment conviction and broader market awareness. Alta Ares, recommended by 20VC’s Julien Codorniou, develops AI-powered counter-drone systems addressing military modernization needs highlighted by the Ukraine conflict.
The European startup landscape spans various stages from pre-launch to unicorn status across multiple sectors, with defense technology gaining particular momentum following geopolitical shifts.
Security Challenges in AI Infrastructure
AI evaluation startup Braintrust faced a security incident that prompted customer-wide API key rotation recommendations. The company confirmed “unauthorized access” to one of its Amazon Web Services cloud accounts containing customer API keys used for accessing cloud-based AI models.
In an email to customers seen by TechCrunch, Braintrust stated it “communicated with one impacted customer and to date have not found evidence of broader exposure.” The company asked “every customer to rotate” their stored API keys as a precautionary measure.
Braintrust spokesperson Martin Bergman told TechCrunch the email was sent “out of an abundance of caution” and emphasized that while the company “confirmed a security incident,” there is “no evidence of a breach at this time.” The startup has locked down the compromised account, audited system access, and rotated internal secrets.
Startup Competition Opportunities
TechCrunch’s Startup Battlefield 200 applications close May 27, offering pre-Series A startups access to $100,000 equity-free funding and exposure to 10,000+ attendees at TechCrunch Disrupt 2026. The competition has historically launched companies including Dropbox, Discord, Fitbit, Trello, and Mint.
The program seeks ambitious early-stage startups with functional MVPs across all industries globally. Most selected companies are pre-Series A, though select Series A startups may qualify case-by-case. The competition provides direct VC feedback and global visibility through live pitching on the main stage.
What This Means
Skyroot’s unicorn achievement signals growing investor confidence in India’s private space sector, particularly as the country opens commercial space activities to private companies. The timing ahead of India’s first private orbital launch creates a compelling narrative for both domestic and international space industry development.
Krutrim’s pivot from AI model development to cloud services reflects the challenging economics of competing directly with well-funded global AI leaders. The shift suggests Indian AI startups may find more sustainable paths through specialized services rather than foundational model development.
The security incident at Braintrust highlights ongoing cybersecurity challenges as AI infrastructure scales. As more companies integrate AI services, robust security practices become critical for maintaining customer trust and protecting sensitive API access credentials.
FAQ
What makes Skyroot different from other space startups?
Skyroot focuses specifically on small satellite launches with its Vikram-1 rocket, competing in the same market as Rocket Lab and Firefly Aerospace. The company’s founding by former ISRO engineers and its upcoming status as India’s first private orbital launch provider gives it unique positioning in the growing Indian space market.
Why did Krutrim pivot from AI models to cloud services?
Building large-scale AI models requires massive capital and computing resources, making it difficult to compete with well-funded global players like OpenAI and Anthropic. Cloud services offer more sustainable revenue opportunities with lower development costs and clearer paths to profitability.
How significant is the Braintrust security incident?
While Braintrust confirmed unauthorized access to customer API keys, the company states no evidence of broader data exposure exists. The incident serves as a reminder that AI infrastructure companies must implement robust security measures as they handle increasingly sensitive customer credentials and data.
