Telecommunications and internet group SoftBank and satellite network operator Hughes Network Systems invested a combined $400m in UK-based satellite internet system developer OneWeb today.
The capital will be added to the $1bn committed by conglomerate Bharti Enterprises’ Bharti Global subsidiary and the UK government to buy OneWeb in July 2020 in an auction following its bankruptcy.
OneWeb is setting up a constellation of satellites intended to provide widespread broadband internet coverage. It declared bankruptcy in March 2020, at which time it had launched 74 of a planned 648 satellites.
The company launched a further 32 satellites last month and the latest capital influx is expected to fund the completion of the project by the end of 2022.
SoftBank, the biggest investor in the company pre-bankruptcy, is paying $350m to increase its stake to 30%, according to the Financial Times, and will also get a seat on its board of directors. It had held a 9% stake having converted some $90m in debt financing into equity through the $1bn rescue package in 2020.
Hughes pledged $50m for OneWeb back in July, shortly after the initial $1bn purchase, and the funding announced today represents a seperate investment. Its president, Pradman Kaul, said: “OneWeb continues to inspire the industry and attract the best players in the business to come together to bring its [low earth orbit] constellation to fruition.
“The investments made today by Hughes and SoftBank will help realise the full potential of OneWeb in connecting enterprise, government and mobility customers, especially with multi-transport services that complement our own geostationary offerings in meeting and accelerating demand for broadband around the world.”
The company had previously raised $3.4bn in funding as of early 2019 when it secured $1.25bn from SoftBank, diversified conglomerate Grupo Salinas, mobile chipmaker Qualcomm and the government of Rwanda.
Qualcomm and conglomerate Virgin invested an undisclosed amount in OneWeb in 2015 and joined Hughes, Bharti Enterprises, Grupo Salinas subsidiary Totalplay, aerospace manufacturer Airbus, beverage producer The Coca-Cola Company and satellite technology producer Intelsat to provide $500m later the same year.
SoftBank put up $1bn to lead a $1.2bn round for the company in 2016 that also featured Hughes, Bharti Enterprises, Qualcomm, Airbus, Coca-Cola Company, Virgin Group and Totalplay, adding $500m the following year. It had reportedly written down $460m of its investment as of August 2019.
