Nelco invests $20 million in Elveo Mobile to expand direct-to-device satellite services.

Nelco, the Tata Group’s satellite communications service provider, has announced a partnership and a $20 million (about ₹191.2 crore) investment in US-based Lunar Holdco Inc., which operates under the Elveo Mobile brand.

The investment is aimed at bringing next-generation Direct-to-Device (D2D) and Internet of Things (IoT) satellite connectivity services to India and other South Asian markets, Nelco said in a regulatory filing recently.

As part of the agreement, Nelco will subscribe to Compulsorily Convertible Debentures (CCDs) issued by Delaware-headquartered Lunar Holdco.

The CCDs will carry a compounded annual return of 7 per cent and will be convertible into equity shares of Lunar Holdco upon the occurrence of specified conversion events.

The partnership is expected to strengthen Nelco’s presence in the emerging D2D satellite connectivity segment and support the expansion of satellite-based communication services across India and South Asia.