GalaxEye’s First Satellite Failed. Now the Real Test Begins

12 August 2026

For GalaxEye, Mission Drishti was supposed to be the moment when years of development translated into a working satellite in orbit. Instead, the Bengaluru-based space-tech startup lost communication with the spacecraft within weeks of its launch, leaving its core technology waiting for another chance to prove itself.

A different approach to Earth observation

Founded in 2021 by five IIT Madras alumni, GalaxEye is developing OptoSAR, a satellite technology that combines optical imaging with Synthetic Aperture Radar (SAR). Optical cameras produce familiar, high-quality images but can be affected by clouds and darkness. SAR uses microwave signals and can operate through clouds and at night, although its imagery is more difficult to interpret.

GalaxEye's idea is to combine both technologies on the same satellite and fuse the resulting data. The company plans to use this capability for applications including defence, agriculture, infrastructure, insurance and disaster management.

Mission Drishti changes the story

On 3 May 2026, GalaxEye launched Mission Drishti aboard a SpaceX Falcon 9. The approximately 190-kg satellite represented a major milestone for the company and was designed to demonstrate its OptoSAR technology in orbit. However, during the satellite's early orbital phase, a severe geomagnetic solar storm affected the spacecraft. According to GalaxEye's initial root-cause analysis, radiation from the storm likely damaged a critical onboard subsystem. Communication with Drishti became intermittent and eventually stopped. On 7 July, the company said the chances of recovering the satellite were low.

The failure does not necessarily mean OptoSAR itself did not work. The bigger problem is that the mission ended before GalaxEye could fully demonstrate the technology and generate commercially useful imagery.

GalaxEye responds with StarOps

Rather than abandoning its approach, GalaxEye has moved to strengthen its spacecraft capabilities. On 10 August 2026, the company announced the acquisition of StarOps, a Bengaluru-based spacecraft engineering company with roots in TeamIndus. StarOps brings expertise in propulsion, avionics, flight computing, guidance and navigation, structures and mission operations. It has also developed satellite bus platforms in the 50 kg, 150 kg and 250 kg categories, with more than 66% indigenisation.

The acquisition is significant because the satellite's payload is only one part of the system. Power, communications, computing, navigation and thermal systems are equally important for keeping the payload operational. GalaxEye has said it plans to build two new OptoSAR satellites within 24 months.

The valuation question

GalaxEye has reportedly raised around ₹212 crore since inception, while its latest funding rounds implied a valuation of approximately ₹489 crore. The company also raised around ₹93 crore during 2026, including a ₹49.29 crore allotment in June. For investors, however, the important question is the price being paid today. The source notes that GalaxEye shares have reportedly traded in the unlisted market at around three times the latest primary valuation. That means investors are potentially paying a significant premium before the company's technology has been fully proven in orbit.

What happens next?

GalaxEye now faces a clear sequence of milestones: build the next satellite, successfully launch and commission it, demonstrate OptoSAR's capabilities and convert the resulting data into commercial contracts. The StarOps acquisition may strengthen the company's engineering capabilities, but it cannot eliminate execution risk. For GalaxEye, the next satellite will therefore be more than another mission. It will be the company's next opportunity to move from technological promise to technological proof.