Tata's Nelco Invests $20 Million in U.S. Satellite Communications Firm Elveo

en.Wedoany.com Reported - Nelco Limited, a satellite communications service provider under the Tata Group, announced on August 17 that it has made a strategic investment of $20 million (approximately ₹1.912 billion) in U.S. satellite communications company Lunar Holdco (operating as Elveo Mobile), to launch next-generation direct-to-device (D2D) and Internet of Things (IoT) satellite connectivity services in the South Asian market.

Under the agreement, Nelco will subscribe to mandatory convertible debentures (CCDs) issued by Lunar Holdco, with a compound annual return of 7%, which may be converted into equity in the company upon certain conversion events in the future. The investment does not grant Nelco control over Lunar Holdco.

Lunar Holdco, established in January 2026 through the merger of Lynk Global and Omnispace, is currently a pre-revenue company developing a global S-band non-geostationary orbit (NGSO) satellite network. The company has secured support from strategic investors, including SES.

Under the collaboration arrangement, Nelco will offer next-generation connectivity and computing solutions powered by Elveo satellites to enterprises in the automotive, maritime, energy, and government sectors across India and the South Asian market. Potential use cases include in-vehicle telematics, fleet and asset tracking, infrastructure monitoring, remote operations, and disaster response. Elveo's commercial operations in South Asia remain subject to relevant regulatory approvals and licenses.

P J Nath, CEO of Nelco, stated that direct-to-device is the next growth wave in the global satellite communications market. Ramu Potarazu, CEO of Elveo, said the partnership will extend the company's communications solutions to new enterprise markets, including automotive, telecommunications, and infrastructure.

Nelco is a leading satellite communications service provider in India, serving enterprise, government, defense, maritime, and aeronautical in-flight connectivity sectors. The company's net profit for the first quarter of fiscal year 2026 (ending June) grew 30% year-on-year to ₹234 million, while net sales increased 7% to ₹8.003 billion.