Chinese Commercial Aerospace Firm GalaxySpace Bags New Round of Financing

Beijing-based commercial aerospace firm GalaxySpace announced on September 7 that it has completed a new round of financing, bringing it to a post-investment valuation of about 11 billion yuan ($1.58 billion). The round was led by CCB International, Anhui Sanzhongyichuang Industry Development Fund, Hefei Industry Investment and Sincere Fund, while existing shareholders Legend Capital and Chaos Investment provided follow-up investment.

GalaxySpace, which focuses on commercial aerospace technology and satellite internet, was established in 2018. On March 5 this year, it successfully launched six low-Earth orbit (LEO) broadband communication satellites developed in a batch for the first time. These satellites formed China’s first LEO broadband communication test constellation, and became part of a test satellite internet network, nicknamed “Mini-Spider Constellation.”

At present, Mini-Spider Constellation has completed a number of satellite internet application verifications, including the first convergence test of LEO broadband communication satellites and 5G private network in China, marking an important step in the construction of satellite-ground convergence networks.

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Xu Ming, Founder, Chairman and CEO of GalaxySpace, said that the funds will be mainly used for R&D of satellite internet-related technologies and the development of commercial applications. It will accelerate research of core technologies such as stackable satellites, flexible solar panels and digital processing loads. It will also accelerate the construction of low-cost batch manufacturing capabilities of satellites, so as to move towards the 6G era.

At present, the new-generation stackable satellites of GalaxySpace have entered the prototype development stage, and they are also the first of their kind in China. They are planned to be launched early next year. Xu Ming said that the development of stackable satellites will contribute to the mass manufacturing of satellites and the rapid deployment of large constellations.

The construction of global space infrastructure has accelerated. Commercial aerospace technology is becoming one of the new driving forces for the development of the world economy. According to Morgan Stanley’s report, it is estimated that by 2040, the value of the global space economy will reach $1 trillion. Within this, satellite internet is expected to account for 50% or even 70% of market growth.