(Yicai) Feb. 13 -- ISpace has raised CNY5 billion (USD730 million), the single largest amount to date for a private aerospace company in China, to finance faster development and commercialization of its reusable methalox carrier rockets and expand its launch, assembly, and sea-recovery capabilities.

The Beijing-based company, also known as Interstellar Glory Aerospace Science and Technology, wrapped up the latest funding round on Feb. 9, it announced yesterday. Cowin Capital and existing shareholder Jingming Capital co-led the Series D++ fundraiser, with Spring Partners, Chengdu Industry Group, and Qianlima Capital also taking part.

The large amount raised by iSpace reflects the supply-and-demand imbalance in China’s commercial aerospace market, according to industry insiders. China has approved more than 200,000 satellites, so demand for constellation launches has surged. ISpace is one of the few private firms that has reusable rockets, sea-recovery capability, and a reusable assembly plant.

Since the second half of last year, financing in the sector has heated up. Beijing Galactic Energy Space Technology completed a CNY2.4 billion Series D financing round last September, and Space Pioneer secured CNY2.5 billion in two fundraisers the following month.

ISpace is preparing for an initial public offering, and according to an update it gave at the end of last month, the pre-IPO advisory process is underway.

The proceeds of iSpace’s raise will mainly go on speeding up development and commercialization of iSpace’s reusable liquid oxygen and methane rockets, the company said.

With the new funding, it also plans to pursue the ‘land launch, sea recovery’ method of using reusable craft, expand final-assembly and test production capacity, improve core structural, electrical, and propulsion test capabilities, bolster sea-recovery infrastructure, address gaps in launch capacity, and deepen its industrial footprint across Beijing and the provinces of Shaanxi, Hainan, Sichuan, and Guangdong.

Founded in 2016, iSpace is one of China’s first private commercial aerospace firms. In 2019, its Hyperbola-1 Y-1 rocket successfully reached orbit, making it the first private Chinese launcher to achieve precise orbital insertion. The firm has since redirected its research and development toward the Hyperbola-3, a reusable methalox vehicle slated for its maiden flight later this year.

Editor: Futura Costaglione