Shanghai-based satellite firm SpaceSail has raised $1 billion in new funding to expand its low Earth orbit network across China and worldwide.
The latest funding round values the commercial satellite operator at more than $7 billion, with investors acquiring a 13.94% stake in the business.
The transaction represents a record sum for China's commercial satellite internet sector, according to a report by the South China Morning Post. A total of 18 investors participated in the round, including state-backed entity Shanghai Alliance Investment and venture capital firm CAS Star.
SpaceSail was founded in 2018 in Shanghai to build commercial space infrastructure. Low Earth orbit satellites operate at lower altitudes than traditional geostationary craft, allowing for faster data speeds and reduced latency in broadband communications.
State backing and global expansion
SpaceSail said the fresh capital will strengthen its financial position and allow it to conduct more satellite launches. The company aims to expand its low Earth orbit coverage to compete under better conditions against US rival Starlink.
Starlink, operated by SpaceX under president Elon Musk, currently leads the global satellite internet market. SpaceX has built a customer base of 12 million users supported by regular satellite launches to maintain network reliability.
Chinese officials view sovereign broadband infrastructure and direct-to-device satellite connectivity as a key strategic priority. Beijing's involvement in funding SpaceSail reflects broader government efforts to support China's aerospace sector through both public initiatives and private investment.
Qianfan constellation targets
SpaceSail plans to direct the funding toward expanding its Qianfan satellite constellation. The network currently operates 238 satellites following its initial deployment in 2024.
Chinese state broadcaster CCTV reported that the project aims to deploy 1,296 satellites during its first operational phase. SpaceSail ultimately intends to build a global network containing more than 14,000 units over the long term.
The expansion comes as SpaceX begins administrative procedures to deploy a next-generation Gen3 Starlink network comprising 100,000 satellites.
