SpaceSail, China’s low Earth orbit satellite operator, has launched a new round of fundraising, according to a report by state media outlet Securities Times.

The Shanghai government-backed company, which is widely viewed as a challenger to Starlink, is planning to sell a combined equity stake of no more than 20% in the latest financing round. The report said SpaceSail intends to bring in up to three new investors, while existing shareholders are also expected to take part in the capital increase.

Proceeds from the fundraising will be used primarily for the construction of its satellite constellation, research and development, market expansion, and day-to-day operational costs, according to the report.

SpaceSail aims to deploy as many as 15,000 low Earth orbit satellites by 2030 and has already secured overseas contracts in markets including Brazil, as it seeks to expand its international footprint and compete more directly with Starlink.

The fundraising move comes shortly after SpaceX, the US-based company behind Starlink, completed a major stock market debut that raised $85.7 billion.