The company was founded by Srinath Ravichandran, Moin SPM, Satyanarayanan Chakravarthy and Janardhana Raju within IIT Madras with a seed funding of ₹3 crore (equivalent to ₹4.2 crore or US$490,000 in 2023) with aim to develop and launch its first rocket in 2021 and subsequently develop ability to provide launch service for satellites weighing up to 100 kg (220 lb).

[6] A Non-Disclosure Agreement (NDA) was signed with Department of Space to obtain government's technological assistance in development of launch vehicles.

[9] AgniKul signed a framework agreement with the Department of Space in September 2021 for access to ISRO facilities and technical expertise for the development of its two-stage small-satellite Agnibaan launch vehicle.

[12][13] According to co-founder and CEO Srinath Ravichandran, Agnikul is attempting to perfect the technology of firing several engines simultaneously and conducting experiments for stage separation following the success of the Agnibaan SOrTeD mission.

'Arrow of Fire') is envisaged to be a mobile launch system capable of placing a 100 kg (220 lb) satellite into a 700 km (430 mi) orbit.

[24] An agreement has been signed by Nibe Space, a division of Nibe Defence and Aerospace on 9 September 2024, with AgniKul Cosmos, Skyroot Aerospace, Centum Electronics, SpaceFields, Sisir Radar, CYRAN AI Solutions, and Larsen & Toubro for the launch of India's first constellation of multi-sensor, all-weather, high-revisit Earth observation satellites.