China's satellite internet startup SpaceSail has raised about 7 billion yuan, or about 1.4 trillion won, accelerating expansion of its low-Earth orbit satellite network. South China Morning Post reported on Aug. 20 local time that the fundraise is the biggest ever in China's satellite internet sector.

The company's official corporate name is Shanghai Spacecom Satellite Technology. SpaceSail, the operator of China's Qianfan satellite constellation, completed its Series B investment on Aug. 18. A filing by the Shanghai United Assets and Equity Exchange said the funding corresponds to a 13.94 percent equity stake. Its valuation was put at about 50 billion yuan. Eighteen investors took part, including state-backed Shanghai Alliance Investment and hard-tech focused venture fund CAS Star.

China is moving quickly to build a large-scale low-Earth orbit satellite network capable of broadband internet and direct device connectivity. SpaceSail's fundraising is also tied to efforts to respond to the satellite internet market led by Starlink.

Founded in Shanghai in 2018, SpaceSail has rapidly increased its number of satellites. It launched 54 satellites in 2024 and raised the cumulative total to 108 in 2025. The Shanghai State-owned Assets Supervision and Administration Commission said there are currently 238 Qianfan satellites in operation following the latest deployment in early July.

The gap with Starlink remains large. Starlink said it operates more than 10,000 satellites and has secured more than 12 million subscribers. SpaceSail plans to narrow the gap using new funding and expanded launch capacity in China, and in the long term to pursue a global constellation of more than 14,000 satellites.

It has also begun expanding overseas. Brazil's telecommunications regulator Anatel approved SpaceSail to provide satellite communications services earlier this year. It is reviewing similar agreements in Malaysia, Thailand and Kazakhstan.

Technological progress in China's commercial space industry has also continued. LandSpace carried out a ground-assisted recovery of an orbital booster stage on Aug. 19. In China, China Satellite Network Group is also building another large constellation, the Satellite Internet series, and competition is continuing.