• Starlink, Blue Origin moves boost satellite industry
• Opportunistic acquisitions focused primarily on Europe
• Workforce expected to grow to about 245 by year-end

France-based optical satellite-to-ground communications firm Cailabs is exploring potential new equity funding as its market accelerates following recent moves by major space players, co-founder and CEO Jean-François Morizur told Mergermarket.

The Rennes-headquartered company, which raised EUR 57m last year, said announcements in January by Starlink and Blue Origin regarding plans to deploy optical satellite communications are boosting momentum in its market, prompting it to consider raising additional capital to capture the opportunity, Morizur said last week on the sidelines of the Mobile World Congress (MWC) in Barcelona.

A potential fundraising size, timing and preferred investor profile were not disclosed, he said. The goal would be to keep pace with a rapidly evolving industry and maintain the company’s leadership, he added, declining to comment further on the matter.

Opportunistic acquisitions strategy

Separately, Cailabs could acquire targets as part of its growth strategy, primarily in Europe, although opportunities in the US could also be considered, Morizur said.

The financing structure for any acquisition would depend on the size of the target and could include the company’s own resources, proceeds from its latest funding round or other mechanisms, the CEO said. Cailabs has strong support from its board and existing investors for its strategic growth, he said, declining to elaborate further.

The company welcomes target proposals from advisors with a strong understanding of the sector, Morizur said. It already has a well-established network within the industry, and any potential targets shared should represent a clear strategic fit with Cailabs’ activities, he explained.

The global satellite laser communications market was valued at USD 933.7m in 2024 and is projected to reach USD 36.4bn by 2034, growing at a CAGR of 45.4%, according to a Global Market Insights report.

Acquisitions would be opportunistic, the CEO said, meaning the company would only pursue deals involving targets closely related to its activities, such as businesses working in optical technologies or teams with relevant engineering capabilities that could strengthen product development and expand its portfolio. These could also include intellectual property, he added.

Morizur declined to comment on whether the company is currently in talks with potential acquisitions.

Scaling production and expanding capabilities

Last year’s EUR 57m funding round included a EUR 37m venture loan from the European Investment Bank alongside EUR 20m of equity from existing investors, he said. These include Definvest and Fonds Innovation Défense (Armed Forces Ministry and Bpifrance), NewSpace Capital, the European Innovation Council (EIC) Fund, Starquest Capital and Crédit Agricole Ille-et-Vilaine Expansion (CAIVE), according to a September 2025 press release.

Cailabs’ three co-founders no longer hold a majority stake in the company, Morizur said, declining to disclose further details of its shareholding structure.

Proceeds from the funding round are intended to support several objectives, including scaling up production of optical ground stations, he said. Cailabs currently produces up to 12 units per year and aims to increase capacity to up to 50 once a new facility in Rennes comes online in mid-2027, Morizur said.

Another objective is to expand the company’s product portfolio by standardising its existing low-Earth orbit (LEO) optical ground station solution for mid-Earth orbit (MEO) and geostationary Earth orbit (GEO) satellites, which are currently delivered as customised projects, he said. Other uses of the round’s proceeds include developing standard transportable ground stations and advancing higher-speed optical communications, with Cailabs working towards 10 gigabits per second (Gbps), 100 Gbps and 200 Gbps and beyond, the CEO explained.

The company currently employs around 190 people and expects to increase its workforce to about 245 by the end of the year as part of its efforts to support its growth strategy, he said.

It was founded in 2013 as a spin-out from research institution Laboratoire Kastler Brossel.

Market adoption and customer base

Morizur declined to disclose revenue and EBITDA figures. However, revenues have approximately doubled each year since 2022, when the company first reached seven digits, and grew by more than 100% between 2024 and 2025, he said.

Cailabs’ technology serves both defence and commercial satellite operators, the CEO noted. Military users value optical links because lasers are difficult to detect, intercept or disrupt, providing secure communications often referred to as low probability of detection and intercept, he said.

Commercial customers, meanwhile, are primarily focused on data capacity and cost efficiency, as optical links allow significantly higher data rates than traditional radio systems, while avoiding spectrum constraints, Morizur said. The company works with satellite constellation operators and Earth-observation players seeking to transmit large volumes of data to the ground, he said.

Clients include the French Ministry of Defence and Luxembourg-based satellite operator SES, Morizur said, declining to disclose further client names.