Satellite firm Oneweb secures $400m in fresh Softbank-led funding
Oneweb, the satellite broadband firm bailed out by the UK government last year, has raised a further $400m (£294m) in a fresh funding round led by Softbank.
The Japanese conglomerate will also take a seat on the board of Oneweb, which was rescued from bankruptcy in November by the government and Indian billionaire Sunil Bharti Mittal.
The majority of the funding was provided by Softbank, while $50m was also injected by US telecoms group Hughes Network Systems.
The latest investment takes the total raised by Oneweb to $1.4bn, which will fund the company’s first constellation of 648 satellites by the end of 2022.
London-based Oneweb is raising funds to launch its network of low-orbit satellites to provide broadband services across the globe.
In December the company successfully launched 36 satellites, ending a lengthy delay to its launch schedule amid its near collapse.
However, the firm has radically scaled back its ambitions, revising its constellation plans down from 47,884 to 6,372 satellites.
“We are excited to support Oneweb as it increases capacity and accelerates towards commercialisation,” said Softbank chairman Masayoshi Son.
“We are thrilled to continue our partnership with Bharti, the UK government and Hughes to help Oneweb deliver on its mission to transform internet access around the world.”
The fresh investment enlarges Softbank’s stake in the company while diluting the holdings of the UK government and Bharti.
However, the government has a so-called golden share, granting it powers of veto over future investment and control over access to the network.
“Our investment in Oneweb is part of our continued commitment to the UK’s space sector, putting Britain at the forefront of the latest technological advances,” said business secretary Kwasi Kwarteng.
“Today’s investment brings the company one step closer to delivering its mission to provide global broadband connectivity for people, businesses and governments, while potentially unlocking new research, development and manufacturing opportunities in the UK.”