Tata's Nelco invests $20 million in Lunar Holdco to pursue IoT
Tata Group's satellite arm, Nelco, has invested $20 million in Lunar Holdco (also called Elveo Mobile), a U.S.-based company working on next-generation satellite networks.
Instead of buying shares right away, Nelco used Compulsorily Convertible Debentures (CCDs) (basically, a loan that can turn into shares later) with a 7% annual compounded return.
The move is all about teaming up for direct-to-device and IoT satellite services in India and beyond.
Nelco lacks control in Lunar Holdco
This deal doesn't give Nelco control over Lunar yet. The final stake depends on how things play out with those debentures.
Lunar itself is pretty new: it was formed this year after Lynk Global and Omnispace merged, and it's backed by big names like SES.
While it hasn't started business in India yet, it has access to markets across Latin America, Africa, and Asia, so keep an eye out for more global satellite action soon.