Beijing-based private satellite developer Galaxy Space has raised a new round of financing led by JIC Technology Investment, a member enterprise of state-owned China Jianyin Investment Ltd., according to Chinese news portal PEdaily.
Returning investors Shunwei Capital, IDG Capital, Legend Capital and Morningside Venture Capital also participated in this round, which will take the company valuation to RMB5 billion (S$707.15 million) after the completion of the deal.
Founded in 2016 by Xu Ming, the co-founder of Chinese mobile internet company Cheetah Mobil which listed in the New York Exchange in 2010, Galaxy Space is committed to developing a constellation of “low-cost, high-performance” small satellite in low earth orbits (LEO) to provide a global integrated 5G coverage network. The start-up is also aiming to build automated satellite plants in the future.
Galaxy Space has developed Galaxy I, a small lightweight broadband communication satellite model designed to automatically derail and burn out in the atmosphere when it approaches its expiration. The company also launched Zhongwei-1, an AI-powered satellite with an orbit of 539 kilometers in June 2018, and co-developed an AI-powered satellite Yuquan-1 in 2017 for China’s Inner Mongolia Autonomous Region.
“Galaxy Space built a low-orbit broadband communication satellite constellation through low-cost and high-performance 5G satellites, and made deployment in frequency orbit resources. This is of strategic importance for the development of China’s commercial satellites,” said Xiao Li, chairman of JIC Technology Investment.
Proceeds of this round will be used for the technology development of LEO broadband communications satellites and their commercialization in business scenarios.
The company previously raised a series A+ round of financing from a range of investors including Shunwei Capital, IDG Capital, Morningside Venture Capital, Gaorong Capital and Source Code Capital in November 2018.