New Delhi, Aug. 17 -- Mumbai-listed Nelco, the satellite communications arm of the Tata Group, has invested $20 million (Rs 191 crore) in Elveo Mobile, a recently launched direct-to-device mobile connectivity company.
Elveo Mobile, which is operated by Lunar Holdco Inc, was incorporated in Delaware, US, earlier this year. It was formed through the merger of Lynk Global, which operates a satellite-to-mobile-phone system that functions as a "cell tower in space", and Omnispace, a telecommunications firm.
According to a company statement, Nelco has subscribed to compulsorily convertible debentures (CCDs) worth $20 million. The CCDs carry a 7% annual compounded return and are convertible into equity shares of Lunar Holdco under the agreed terms.
"The investment is strategic in nature and is intended to establish a long-term partnership with Lunar for the provision, distribution and commercialization of satellite-based direct-to-device (D2D), IoT and related communication services in India and other countries," Nelco said in the statement.
The company added that the investment is expected to provide it strategic access to emerging satellite connectivity solutions and support growth opportunities in the satellite ecosystem.
Elveo Mobile is developing a next-generation non-geostationary satellite orbit (NGSO) network designed to deliver D2D, IoT, and mobile satellite connectivity services.
Although the company is currently pre-revenue and awaiting full deployment of its satellite constellation, its network aims to provide seamless mobile connectivity from space to phones, connected devices, and machines worldwide.
Meanwhile, SES SA, a global satellite operator and an existing investor in both Lynk Global and Omnispace before their merger, has also doubled down, "expanding its strategic investment and collaboration" with Elveo Mobile, it said. SES said it will support Elveo in accelerating its delivery of powerful, cost-effective global D2D satellite connectivity services.
Published by HT Digital Content Services with permission from VC Circle.