The company, Titan Aerospace, has launched a rocket with an orbital module to an altitude of about 500 kilometers and then a capsule into space for the first time.
The launch took place in the southern Indian state of Tamil Nadu, about 80 kilometers from the Sriharikota airport.
The company is developing a technology that uses liquid oxygen to propel a vehicle to the moon.
The first mission will take place in 2021.
It will be the second launch by Titan Aerospace.
The other launch company is called Spacecraft Corporation.
The Indian space agency is planning to launch another rocket in 2020.
The next launch will be an India-Russian mission that will carry a payload of four satellites and a robotic laboratory, the Indian Space Research Organisation said in a statement on Wednesday. [Reuters]