As part of its expansion plans, OQ will also set up a subsidiary in Athens, Greece, as well as one in Al Khobar, Saudi Arabia.
Luxembourg-based 5G satellite operator OQ Technology has raised $13m for its planned satellite constellation to connect internet of things (IoT) devices.
The Series A funding round was co-led by Saudi Aramcos venture arm Waed Ventures and Greece-based venture capital firm Phaistos Investment Fund.
The company will utilise its acquired funding to grow its satellite constellations, acquire more licenses, and expand its footprint into Saudi Arabia and Greece in addition to other countries.
OQs technology enables applications requiring fast and real-time data processing in remote and rural areas through small satellites in low Earth orbit (LEO).
Earlier this year, OQ Technology launched its third satellite mission, Tiger-3, aboard the SpaceX Falcon 9 rideshare mission Transporter-4. The company has more planned satellites that will be launched soon to further grow its constellation.
Speaking about the funding, Omar Qaise, Founder and CEO of OQ Technology, said: Against a challenging economic backdrop, our decision to seek funding was rewarded with a raise that will help us achieve our immediate goals in terms of growth, expansion into the Middle East, African, Asia, South America, and Oceania, increasing our spectrum licenses and patents portfolio, and further our product development.
We have pioneered satellite-based 5G communications with the worlds first universal IoT device that can provide connectivity using satellite in low Earth orbit (LEO) and other patented technologies. Since 2019, we had many successful missions with more in the pipeline, and we had successful service demos with Global Fortune 500 companies. This investment is a testament to the strength of our business plans, capabilities, and technology that OQ has been implementing since its inception, and a clear differentiator from many other satellite IoT companies.
Fahad Alidi, Managing Director and CEO at Waed Ventures, commented: Our investment in OQ Technology, a global pioneer in satellite technology, is the true manifestation of our mission to position the Kingdom as the centre of gravity for global tech ventures. He added, we envision OQ to become the nucleus to building a full spacetech ecosystem that starts with the Kingdom and outspreads to the surrounding region.
5G Ventures CEO Antonis Tzortzakakis added: “We consider there is great potential for 5G IoT technology, and we are very excited to invest in OQ Technology, together with Aramco’s Wa’ed Ventures. The investment fits perfectly in 5G Ventures’ strategy for supporting innovative 5G-related technologies that are capable of creating value and contributing to the evolution of an ecosystem of innovation in Greece.”
As part of OQs expansion strategy, OQ Technology is in the process of establishing two global subsidiaries, one in Saudi Arabia, the first-of-its-kind in the Kingdom and the only 5G space network operations centre in the MENA region, and one in Greece under the name OQ Technology Hellas.
The startup said its Saudi unit would host one of the Middle Easts largest 5G data and network operations centres. The centre will develop new products to engage with the local industrial ecosystem and universities in line with Saudi Arabias space initiatives as part of Vision 2030.
According to the GSMA Intelligence report published this year, the global direct-to-satellite (D2D) market is growing at a fast rate with 3GPP standardised technology offering access to new revenue for telcos, which will be worth over $30bn by 2035.