Private Chinese launch firm Galactic Energy has secured a CNY2.4 billion ($336 million) Series D investment round to develop its Pallas-2 and Ceres-2 rockets, marking one of the biggest funding rounds for any Chinese private launcher and prompting experts to estimate an Initial Public Offering (IPO) within 12-18 months.
In an announcement on WeChat, the firm says investors in the Series D round include the Beijing Commercial Aerospace and Low-Altitude Economy Industry Investment Fund, as well as city and provincial funds from Nanjing, Sichuan and Hainan, amongst others.
The firm’s Ceres-1 rocket is proving a reliable workhorse in Chinese space missions, boasting the highest success rate amongst Chinese private launchers, according to China Daily, and completing 21 missions and deploying 85 commercial satellites.
In fact, Ceres-1 has notched 20 full successes out of those 21 missions, a 95% rate, edging out peers like iSpace’s 80% for Hyperbola-1. Its lone failure was a 2022 partial loss caused by a debris issue, but an 11-mission success streak has since solidified its reputation for small satellite launches.
Ceres-1 can carry around 300 kg into a 500 km Sun-synchronous Orbit (SSO). Ceres-2, under development but expected to launch imminently after successful testing this week, will deliver up to 1,600 kg to Low Earth Orbit (LEO) and up to 1,300 kg to an SSO.
Galactic Energy, founded in 2018, last raised US$154 in 2023 for its Pallas-1 rocket development.
Pallas-1 is a reusable rocket concept fitted with legs and fins, modelled on SpaceX’s mainstay Falcon 9, and is also expected to be demonstrated within 2025, while Pallas-2 will be capable of 20 to 58 tonnes, positioned as a rival to the Long March-8 with a debut launch planned for 2026.
Series D cash will fund a Nanjing test stand and help Galactic Energy scale production for Pallas, a critical element as the firm aims for a minimum 10 flight proofs by 2028 to attract constellation business.
China watchers say the firm is expected to seek a public listing “soon”. One Chinese space investment expert said he expected an IPO from Galactic “within 12 to 18 months”, with Shanghai the most likely venue.
Valuation could hit $2-3 billion at listing, buoyed by 2025’s expected 50+ private launches nationwide. But analysts warn US export curbs on dual-use tech could cause a hiccup on Pallas engines, while launch overcapacity might spark a shakeout among the many dozens of rocket start-ups competing now in almost every Chinese province.
