• Spanish satellite company aims to invest new funds in 5G constellation
• Sateliot is seeking backing from new or existing investors
• It is planning to test a 5G NR for NB-IoT solution

Spanish low-earth orbit (LEO) satellite specialist Sateliot is seeking €100m in Series C funding to boost deployment of its 5G satellite constellation and is confident of raising the cash in the next couple of months.

The Barcelona-based satellite company said it is looking to bring in a lead investor to build capital that will be used to deploy 16 5G satellites offering direct connectivity to narrowband internet of things (NB-IoT) devices. It also plans to launch its next-generation Tritó satellites in 2027.

The financing will also support demonstrations of Sateliot’s 5G new radio (NR) technology, which incorporates voice, video and data. It has already launched six low-earth orbit (LEO) satellites, and has plans to launch five more this year, with its solution integrating terrestrial and satellite networks to offer 5G in remote locations.

The latest round of funding, which the firm expects to close in the summer, will be primarily in exchange for equity, though Sateliot did not rule out the possibility of incorporating a debt component. The funding round is open to both new investors and existing shareholders.

Sateliot was founded in 2018 and has already raised around €100m in funding. It claims to have agreed pre-contracts worth around €270m with over 400 clients across 60 countries, and partnerships in place with major telcos, including Telefónica, Deutsche Telekom and Vivo in Brazil.

Jaume Sanpera, CEO of Sateliot, said: “This Series C reflects the company’s scale and timing. It is the largest round we have opened to date. With it, we will accelerate the deployment of our constellation and commercial execution on a global scale. We trust in the support of industrial, financial and institutional investors to consolidate a European 5G satellite connectivity infrastructure.”

In addition, Sateliot is anticipating up to 50% public co-financing through match funding. The company has already received backing from the Spanish state, through the Spanish Society for Technological Transformation (SETT), alongside the likes of Indra, Cellnex, Hyperion, Global Portfolio Investments and Banco Santander, while the European Investment Bank also helped finance the initial deployment of its technology.

Speaking of the announcement, Spain’s minister for digital transformation and public administration, Óscar López, cited Sateliot as an example of Spanish and European digital sovereignty. “The government of Spain is proud to finance a Catalan project that integrates the entire cycle of design, assembly and control of satellites made in Spain,” he said.

James Pearce, Editor, TelecomTV