Interstellar Technologies, a Japan-based space infrastructure company, has announced the successful additional raising of 8.9 billion JPY (about USD 61.8 million) funding for its Series F round.
This USD 45.1 million equity financing by Sumitomo Mitsui Banking Corporation, Space Frontiers Fund II, Japanet Holdings, and existing investors. An additional USD 16.7 million was secured through debt financing, according to a media release.
Interstellar has also entered a business alliance agreement with Sumitomo Mitsui Banking Corporation to help build and strengthen supply chains within Japan’s growing space industry.
Interstellar is advancing the vertical integration of its launch vehicle and satellite communications businesses. The company is developing its orbital launch vehicle, ZERO, and was selected for Phase 3 of the Ministry of Education, Culture, Sports, Science and Technology’s Small Business Innovation Research (SBIR) program.
Following a capital and business alliance with Woven by Toyota, a Toyota Group company, in the initial close of this Series F round, Interstellar will leverage their expertise in mass production to scale ZERO’s manufacturing for high-frequency, cost-effective launches.
On the satellite side, Interstellar is developing communications satellites that benefit from the company’s own launch capabilities. Backed by Japan’s Ministry of Internal Affairs and Communications and JAXA’s Space Strategy Fund, the company is building a vertically integrated model, similar to SpaceX’s approach with Starlink, the media release said.
Funds from this round will accelerate the development of ZERO and advance R&D for satellite systems, fueling growth across both divisions, Interstellar said.
“Through this investment, we aim to support the growth of Japan’s space industry by helping Interstellar accelerate the development of supply chains and industrial clusters, leveraging its in-house technological capabilities,” the Sumitomo Mitsui Banking Corporation spokesperson said.
“We recognize that the rocket and satellite communication services being developed by Interstellar are vital components for Japan’s future space infrastructure,” said Tadashi Kito, Head of Space Investment Team, SPARX Asset Management. “These efforts are aligned with Japan’s Basic Plan on Space Policy and will significantly contribute to the essential positioning and communication infrastructure for next-generation mobility society, such as autonomous driving and smart logistics.”
“Interstellar Technologies’ initiatives—both in advancing the domestic space industry through satellite launches and in driving regional revitalization in Taiki, Hokkaido—resonate with JAPANET’s own regional revitalization efforts aimed at creating new industries in local communities,” said Akito Takata, President and CEO, Japanet Holdings.
“Interstellar has been at the forefront of private space transportation in Japan, becoming the first domestic private company to reach space,” said Takahiro Inagawa, Director of the Board, Chief Executive Officer, Interstellar Technologies. “As we look to expand our rocket and satellite communications businesses globally from our base in Taiki, Hokkaido, working with the best partners is essential.”
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AloJapan.com