China’s low Earth orbit satellite company SpaceSail has launched a new fundraising round, according to a report by state media outlet Securities Times on Monday, as the Shanghai government-backed firm pushes ahead with its satellite deployment plans and overseas expansion.
The report said the new financing round would result in a combined equity stake of no more than 20%.
SpaceSail plans to bring in no more than three new investors, while existing shareholders are also expected to take part in the capital increase.
According to Securities Times, the proceeds from the fundraising will be used mainly for satellite constellation construction, technology research and development, market expansion, and daily operating expenses.
Capital raise tied to constellation buildout
SpaceSail is positioning itself as a low Earth orbit satellite network operator with ambitious expansion plans.
The company aims to deploy as many as 15,000 low Earth orbit satellites by 2030, according to the report.
The fundraising comes as SpaceSail seeks to strengthen its network infrastructure and broaden its presence outside China.
The company has already secured overseas contracts in markets including Brazil, where it is seeking to compete directly with Starlink, the satellite internet business associated with Elon Musk.
Low Earth orbit, satellites operate at altitudes ranging from about 160 to 2,000 kilometres above the Earth’s surface.
Brazil approval marks overseas milestone
Earlier this year, Brazil’s telecommunications regulator Anatel officially authorised SpaceSail’s satellite constellation to begin commercial communication services in the country.
That approval made Brazil the first Latin American country to open its market to the Chinese low-orbit satellite network.
SpaceSail’s entry into Brazil is tied to a memorandum of understanding signed in November 2024 between the company and Brazilian state-owned telecommunications firm Telebras.
The agreement focuses on providing broadband internet access to remote and underserved regions of Brazil, with particular emphasis on schools and hospitals.
According to the report, the initiative is expected to support Brazil’s public policies on digital inclusion by improving connectivity in areas that have historically lacked reliable access to telecommunications services.
Fundraising follows major sector developments
SpaceSail’s new fundraising round comes only days after a major development involving its US rival, SpaceX, which owns Starlink, completed the world’s largest initial public offering earlier this month, raising $75 billion in its stock market debut, which later grew to $85.7 billion.
This listing gave investors public access to a business spanning AI, satellite internet, and space infrastructure, while also reshaping competitive dynamics in the sector.
SpaceSail’s fundraising effort aimed at giving the Chinese satellite company additional financial firepower as competition in the low Earth orbit market intensifies.
The latest capital raise, if completed, would provide SpaceSail with fresh funding for its long-term constellation rollout, technology development, and international expansion strategy.
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