Beijing (PingWest)—Beijing Commsat Technology Development, a Chinese commercial satellite company, announced on Wednesday that it secured investment from China Internet Investment Fund (CIIF).
The latest round of financing will be mainly used for R&D, accelerate industry application expansion, and further introduce industry-leading talents.
Without unveiling a specific amount, the company said the investment involved about hundreds of millions of yuan.
It's the first time that CIIF invest in the commercial aerospace field. The fund was jointly founded by the Cyberspace Administration of China and the Ministry of Finance in 2017. The government-backed 100 billion yuan ($15.48 billion) fund is designed to support investment in the internet sector.
The firm has already sent eight of its self-developed satellites into space. The satellites can be used to enhance mobile communication capabilities in airborne, space, and maritime industries and to enable better online access for people living in remote areas.
Citing Guotai Junan Securities, Commsat said that the number of low earth orbit satellites in China is expected to reach 6,000 in the next ten years. By 2030, the country’s satellite Internet market will be worth tens of billions of dollars.
Formed in 2015, Commsat has completed seven rounds of financing. Last May it secured another CNY270 million (USD41.8 million) boosting the company's valuation to CNY2 billion (USD310 million).