Chinese satellite system developer MinoSpace Technology has raised almost 400 million yuan ($59.6 million) in its Series B, B+ rounds of financing to scale its production capacity and client base, the startup announced on Monday.
Guokai National Manufacturing Transformation and Upgrade Fund, the over-50-billion-yuan ($7.5 billion) fund backed by the Ministry of Finance in China, participated in the transactions.
The country’s private equity (PE) companies Yuexiu Industrial Investment Fund Management, Donghao Lansheng, and Haitong Securities’ Haitong Innovation Investment, as well as Zero2IPO Group’s fund of funds (FOF) platform also invested in the rounds.
Beijing-based MinoSpace specialises in the R&D and manufacturing of satellites as well as satellite constellation systems and in-orbit delivery services. Its offerings include self-developed satellite platforms and core components, such as ground communications solutions, for applications in the areas of commercial aerospace and national defence.
The startup has successfully launched seven satellites since its inception in 2017, with a pipeline of over 10 satellites under development.
The new financing will help MinoSpace enhance production capability and streamline its satellite manufacturing, It also looks to expand the existing client base beyond commercial and industrial clients to facilitate the construction of large-scale national satellite projects in China, said the startup.
The deals saw MinoSpace become the latest startup to raise venture money in China’s aerospace industry — a sector that was traditionally dominated by state-owned players until the government started promoting the development of privately-owned, commercial aerospace companies in recent years.
Among some of China’s recent efforts in boosting its commercial aerospace growth, the country kickstarted the construction of its first commercial space launch site in southern China’s island province of Hainan in July 2022.
Domestically, the aerospace industry is projected to cross a market size of 30 billion yuan ($4.5 billion) by 2027, with a compounded annual growth rate (CAGR) of up to 15% between 2022 and 2027, according to market researcher Qianzhan.
MinoSpace’s Series B, B+ rounds followed the completion of its Series Pre-B round at nearly 300 million yuan ($44.7 million) in August 2021. The previous deal was jointly led by Power Capital, Gopher Asset Management, and Lightspeed China Partners, with participation from CDH Investments and Plum Ventures.