Shanghai Spacecom Satellite Technology, a space tech startup backed by the Shanghai municipal government, has raised RMB 6.7 billion ($943 million) to fund the construction of a low-orbit satellite constellation that will provide broadband access to the internet, reports Caixin. The Series A funding round was led by Shanghai Alliance Investment, an investment fund backed by the Shanghai government and a founding investor of Spacecom. Other investors include CAS Investment Management, Hengxu Capital, Guotai Junan Securities and CAS Star.
Capital raised will be mainly used for the construction of a low-orbit satellite constellation, technological research and development, market expansion and daily operations of the company, according to the investors.
Established in 2018, Spacecom is an internet service provider via a low-orbit satellite constellation, taking on Elon Musk’s Starlink. The company is majority controlled by the Shanghai government through two investment vehicles.