Google-backed space tech Pixxel sees 2X revenue growth in FY24

Google-backed space tech firm Pixxel witnessed nearly a two-fold increase in revenue from operations in FY24. However, its losses widened due to higher expenses.

The Bengaluru-based company reported Rs 28.7 crore in operating revenue in FY24, an 87.2% year-on-year (YoY) increase from Rs 15.3 crore earned in FY23, as per its recent financial statements.

The startup’s total revenue, including interest income on fixed deposits and forex exchange gain, reached Rs 30.6 crore, up 86.1% YoY.

Its loss widened 2X to Rs 20.4 crore in FY24. This surge in losses was driven by a 92.3% YoY rise in expenses, totalling Rs 51 crore in FY24, as opposed to Rs 26.5 crore reported in FY23.

It’s important to note that while Pixxel is experiencing losses, it’s a common trend in the space tech industry. As the company continues to mature, refine its business model, and scale its operations, it’s expected to gradually reduce its losses and eventually achieve profitability.

The widening of losses was primarily due to higher spending on employee benefits—the firm’s largest expense—which rose to Rs 26 crore, a 109% YoY increase.

Moreover, its other expenses, including platform expenses, data centre charges, and satellite operation expenses, shot up by 53.4% YoY to Rs 16.2 crore in FY24.

The space tech startup noted it raised Rs 185.4 crore (~$21.9 million) via rights issue during FY24.

“The Company has also raised funds through the issue of Right issue from its parent company amounting to Rs 1,854,190 during the current year,” according to the firm’s independent auditor’s report.

“The Company intends to use the aforesaid funding for creation of satellite which will provide revenue in the future years and is confident of achieving sustainable growth and profitability and be able to settle its obligations as and when they fall due,” the auditor’s report added.

In June 2023, Pixxel secured $36 million in Series B funding, with new investors like Google joining existing backers including Lightspeed, Radical Ventures, Blume Ventures, GrowX, Sparta LLC, and Athera.

The organisation’s other backers include Relativity’s Jordan Noone, Seraphim Capital, Ryan Johnson, and Accenture, among others.

Co-founded in 2019 by Awais Ahmed and Kshitij Khandelwal, Pixxel is a space data company building a constellation of the world’s highest-resolution hyperspectral earth imaging satellites and the analytical tools to mine insights from the data. 

Earlier this month, the space tech firm unveiled its flagship commercial satellites—the  Fireflies. The Fireflies are a constellation of six next-gen hyperspectral satellites that will launch early next year. 

The Fireflies constellation will deliver critical data across various applications, from early detection of crop diseases and pinpointing water stress to real-time deforestation monitoring and tracking ocean pollution. With plans to expand the constellation to 24 satellites, Pixxel aims to make hyperspectral data widely accessible. 

Pixxel has worked with notable organisations such as the Indian Space Research Organisation, NASA JPL, and SpaceX, among others.