Spanish satellite IoT start-up Fossa has received investment from Nabtesco and Indico Capital Partners.

“Fossa is taking a leap in commercialising space-based IoT for industries, and we’re excited to be partnering with Nabtesco Technology Ventures, an industrial leader at the forefront of innovation, and Indico Capital, an experienced player in start-up expansion,” said Julián Fernández, Fossa’s CEO and co-founder.

Fossa Systems provides satellite-based IoT. The funding round was joined by existing shareholder Newmind Venture, and the money should help Fossa build out its constellation of satellites to provide low latency, direct-to-device communications across the globe.

Madrid-based Fossa builds and launches satellites to provide secured end-to-end IoT data services for connected devices. Its customers can monitor and track fixed and mobile assets in real time anywhere in the world via Fossa’s satellite constellation.

The company provides an easy to deploy, scalable offering using low-power off-the-shelf LoRa devices that are suited to handle the small packets of information typically collected by sensors in the energy, agricultural and logistics sectors.

Broadband satellite communications services have increased in popularity as users confront the limits of traditional internet services, but the IoT market has not seen a similar evolution. Companies currently rely on terrestrial providers, which cover only a fifth of the Earth’s surface, or legacy satellite operators, which offer complex, costly options. Sectors with assets operating in remote areas – including agriculture, forestry, resource extraction, logistics, shipping, energy and national defence – need a cost effective, low-power, reliable source of data to ensure optimal performance and respond to unexpected situations.

This growing need positions Fossa well to address one of the hardest-to-reach areas of a market with significant potential. Analysts estimate that the global IoT market will expand by 20% each year until 2030, by which time it could be worth up to $4bn. The market for satellite based IoT alone could be worth up to $2.9bn by 2027, up from $1.1bn last year.

“The next chapter of our current space age will see satellites open vast new frontiers of connectivity,” said Nabtesco managing partner Hiroshi Nerima. “We believe that Fossa can take a leading role in a vital and promising slice of this field.”

Fernández added: “Through this partnership, we aim to consolidate our industrial satellite and IoT commercial offering while expanding our reach to a global level. We’re excited to take on new challenges with the support of Nabtesco and Indico.”

Fossa Systems (www.fossa.systems) is a Spanish company that provides dedicated space services and complete IoT offerings that enable the transmission of information from a device located anywhere on the planet through satellite connectivity. It provides turnkey options for companies with IoT monitorisation or tracking needs. Fossa has launched 18 satellites into space since 2022.