Shanghai Gesi Aerospace Technology, a Chinese startup providing R&D and smart manufacturing solutions to civil and commercial satellites, has secured almost 600 million yuan ($84.8 million) in a Series A funding round.
Shanghai-based Gesi raised the proceeds from domestic investors including CAS Capital, an investment arm of state capital operator CAS Holdings, and Shanghai’s government investment group Songjiang SAIM.
Beijing-based equity investment firm Xin Ding Capital, growth investment firm Huge Capital, and commercial aerospace company Microsat Holdings also invested in the deal, according to a statement by Microsat.
Microsat teamed up with Shanghai Spacecom Satellite Technology, a provider of satellite communication services, to set up Gesi in January 2022.
The Series A round close comes when Gesi is targeting to complete the debugging of its production line and put it into operations by the end of this year.
As an original design manufacturer (ODM), Gesi focuses on the design and manufacture of mass-produced satellites, as well as the R&D of key satellite components.
Its fundraising efforts began several months ago when Jiangsu Yinhe Electronics, a Chinese manufacturer of new energy vehicle (NEV) components and defence equipment, signed a term sheet with the startup to invest 30 million yuan ($4.2 million).
The startup reported 284.7 million yuan ($40.3 million) in total assets and 238.9 million yuan ($33.8 million) in gross liabilities as of June 30, 2023, according to its audited financial results disclosed in an August stock exchange filing by Yinhe Electronics.
As it had yet to begin production, Gesi posted a net loss of over 28.1 million yuan ($4 million) in the first six months of this year. In 2022, its net loss stood at 26.1 million yuan ($3.7 million).