Chinese commercial space company ISpace has raised about 5 billion yuan ($730 million) in a funding round it described as the largest to date for a private aerospace firm in China, as demand for satellite launches surges.
The Beijing-based company, formally known as Interstellar Glory Aerospace Science and Technology, said the Series D++ round closed on Feb. 9. Cowin Capital and existing investor Jingming Capital co-led the financing, with participation from Spring Partners, Chengdu Industry Group and Qianlima Capital.
ISpace said the funds will be used to accelerate development and commercialization of its reusable liquid oxygen–methane launch vehicles, expand production capacity and strengthen launch and recovery infrastructure.
Industry observers attribute the large investment to strong demand for launch services as China advances plans for massive satellite constellations. Authorities have approved more than 200,000 satellites, creating a shortage of available launch capacity.
The company is developing the Hyperbola-3 rocket, a reusable methalox launcher designed for both land-based launches and sea recovery operations. Proceeds from the fundraising will also support expansion of assembly and testing facilities, improvements in propulsion and structural testing capabilities, and development of offshore recovery systems.
ISpace said it aims to deepen its industrial presence across several regions, including Beijing as well as the provinces of Shaanxi, Hainan, Sichuan and Guangdong.
The fundraising comes amid a broader wave of investment in China’s commercial space sector. Other private launch companies have recently secured multi-billion-yuan rounds as competition intensifies to support government-backed satellite programs.
Founded in 2016, ISpace became the first private Chinese firm to place a rocket into orbit in 2019 with its Hyperbola-1 Y-1 mission. The company has since shifted focus toward reusable systems, which are seen as critical for reducing launch costs and increasing flight frequency.
ISpace also said it has begun preparations for a potential initial public offering, with pre-IPO advisory work underway.
