Insider Brief
- Orienspace successfully raised nearly 600 million yuan ($83.67 million).
- Officials for the Chinese private rocket developer saud it’s a significant step toward funding its development programs.
- The round comes as China’s demand for commercial satellite launches is expected to surge.
China’s private rocket developer Orienspace announced it successfully raised nearly 600 million yuan ($83.67 million), a significant step in funding its rocket development programs, according to Reuters. This fundraising round comes as China’s demand for commercial satellite launches is expected to surge, according to the news service.
In the statement, the company named several new investors including the Liangxi Science and Technology Innovation Industry Fund of Funds, backed by the Liangxi district authority in Wuxi. This latest capital influx has propelled Orienspace’s valuation to an estimated 6 billion yuan, disclosed a source familiar with the matter to Reuters, preferring anonymity due to the private nature of the information.
Shenyin & Wanguo investment, affiliated with state-backed securities brokerage Shenwan Hongyuan 000166.SZ, along with Hongtai Aplus and Xin Ding Capital, were also listed among the new investors. Existing shareholders such as HIKE Capital continued their support, Orienspace confirmed to Reuters.
The company plans to allocate the newly acquired funds towards the research and manufacturing of an in-house rocket engine, which utilizes liquid oxygen and kerosene. Additionally, the funding will aid in the development of Orienspace’s Gravity-2 rocket, a model designed for reusability, as per the news service’s report.
Targeting a timeframe of approximately two years, Orienspace aims for the inaugural launch of the Gravity-2.
Founded in 2020, Orienspace recently made headlines earlier this month with the launch of its Gravity-1 rocket, which employs solid materials for engine thrust. This launch forms part of a broader trend observed last year, where several Chinese private rocket startups successfully conducted test or commercial launches, preparing to meet the burgeoning demands of China’s expanding commercial space sector.
Orienspace’s CEO last year announced the company had secured orders for launching several hundred satellites. Investors, according to the news service, anticipate that China’s efforts to build its satellite constellation, in a bid to rival Elon Musk’s Starlink, will significantly boost the demand for rocket launch services. This includes increased reliance on private companies like Orienspace to deploy satellites into orbit.
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