Nelco Invests $20 Million in Elveo to Enter Next-Generation Direct-to-Device and IoT Satellite Connectivity
Nelco Limited, a Tata Group company and one of India’s leading satellite communication service providers, has announced a strategic partnership with Elveo Mobile, the satellite communications business of Lunar Holdco, Inc., to bring next-generation Direct-to-Device (D2D), IoT and satellite connectivity solutions to India and other South Asian markets.
Alongside the partnership, Nelco has invested USD 20 million (approximately ₹167 crore) in Lunar Holdco through Compulsorily Convertible Debentures (CCDs), marking a strategic move into the emerging direct-to-device satellite connectivity market.
The announcements were made by Nelco on August 17, 2026, through filings with the BSE and NSE.
Nelco Invests $20 Million in Lunar Holdco
Nelco has entered into agreements with Lunar Holdco, Inc., a Delaware, USA-incorporated company doing business as Elveo Mobile, to subscribe to CCDs worth USD 20 million.
The investment was made in cash through wire transfer and carries a 7% annual compounded return. The CCDs are convertible into equity shares of Lunar according to the agreed conversion terms.
The company said the investment is strategic in nature and is aimed at establishing a long-term partnership for the provision, distribution and commercialisation of satellite-based D2D, IoT and related communication services.
What Is the Nelco-Elveo Partnership?
Under the partnership, Nelco plans to bring Elveo’s satellite-based connectivity and computing capabilities to enterprises and customers in India and South Asian markets.
The proposed solutions are expected to target several sectors, including:
- Automotive
- Maritime
- Energy
- Government
- Telecom
- Infrastructure
- Enterprise applications
The companies intend to work with enterprises to integrate Elveo’s connectivity solutions across different platforms.
Direct-to-Device Connectivity Could Open a New Market
One of the key areas of the partnership is Direct-to-Device (D2D) satellite connectivity.
D2D technology aims to enable communication directly between satellites and compatible smartphones, IoT devices and machines without relying entirely on traditional terrestrial network infrastructure.
For Nelco, the partnership provides an opportunity to participate in an emerging satellite connectivity market that could complement its existing satellite communication business.
Nelco’s management described D2D as a potential next growth wave for the global satellite communications industry.
Potential Applications Across Multiple Industries
The partnership is expected to support enterprise-grade connectivity applications where traditional networks may be unavailable, unreliable or difficult to deploy.
Potential applications include:
Automotive Telematics
Satellite connectivity can support vehicles and fleets operating across areas with limited terrestrial network coverage.
Fleet and Asset Tracking
IoT connectivity could help companies monitor vehicles, equipment and other assets across geographically dispersed locations.
Infrastructure Monitoring
Remote infrastructure can potentially be connected for real-time monitoring and operational management.
Remote Operations
Industries operating in remote or difficult terrain could use satellite-based connectivity to maintain communications.
Disaster Response
Satellite connectivity can play an important role in maintaining communication during situations where terrestrial infrastructure is disrupted.
Business Continuity
Enterprise customers could potentially use satellite connectivity as an additional communication layer for critical operations.
Elveo’s Satellite Network Focus
Lunar Holdco, operating as Elveo Mobile, is developing a next-generation global S-band NGSO satellite network designed to support Direct-to-Device connectivity.
The company is focused on providing satellite connectivity directly to:
- Smartphones
- IoT devices
- Machines
- Enterprise systems
- Government applications
- Humanitarian operations
Elveo is backed by strategic investors, including SES, a major global satellite communications operator.
Lunar Holdco was formed on January 27, 2026, as part of the merger of legacy companies Lynk Global and Omnispace.
According to Nelco’s disclosure, Lunar is currently a pre-revenue company until full deployment of its satellite constellation.
Nelco Investment Does Not Give Control
The USD 20 million investment is being made through CCDs rather than an immediate direct equity acquisition.
Nelco has clarified that the percentage of shareholding is not presently determinable because it will depend on the conversion events and other terms specified in the CCD documentation.
The investment also does not confer control over Lunar.
The transaction has been completed following execution of the transaction documents and subscription to the CCDs.
Strategic Importance for Nelco
The investment could provide Nelco with strategic access to emerging satellite connectivity technologies.
Nelco already operates across several satellite communication segments, including:
- Enterprise
- Government
- Defence
- Maritime
- Aero-IFC
The Elveo partnership could allow the company to expand its offering into newer D2D and IoT connectivity applications.
The company said the investment is intended to support growth opportunities in the satellite ecosystem and create a long-term partnership around emerging satellite connectivity solutions.
South Asia and International Opportunity
The partnership is not limited to India.
Nelco plans to work with Elveo to explore opportunities across South Asian markets, while certain enterprise segments could potentially be addressed internationally.
According to the disclosure, Lunar’s subsidiaries have market access across countries in Latin America, Africa and Asia, along with a presence in the United States and Europe.
This could give the partnership a broader geographical opportunity as satellite-based connectivity develops globally.
Regulatory Approvals Will Be Required for Indian Services
While the investment transaction itself has been completed, the commencement of Elveo’s commercial services in India will require applicable approvals, licences and authorisations.
These requirements may cover areas including:
- Telecommunications
- Satellite communications
- Spectrum
- Licensing
- Other applicable regulatory requirements
Nelco stated that the investment through subscription to CCDs falls under the automatic route and remains subject to applicable regulatory filings and compliances.
Therefore, the commercial rollout of D2D services in India should be viewed separately from the completion of the investment transaction.
What Does the $20 Million Investment Mean for Nelco?
The investment represents a strategic bet on the future of satellite-based connectivity rather than an immediate revenue contribution.
Since Lunar is currently pre-revenue until the deployment of its satellite constellation is completed, the near-term financial contribution from the investment may not be the primary objective.
Instead, Nelco appears to be positioning itself early in an emerging technology ecosystem.
The potential long-term opportunity comes from combining Nelco’s enterprise and satellite communications capabilities with Elveo’s planned D2D satellite network.
Key Takeaways for Investors
The Nelco-Elveo announcement highlights several important developments:
- USD 20 million investment by Nelco in Lunar Holdco
- Investment through Compulsorily Convertible Debentures
- CCDs carry a 7% annual compounded return
- Strategic partnership with Elveo Mobile
- Focus on Direct-to-Device satellite connectivity
- Expansion into IoT connectivity
- Target markets include India and South Asia
- Potential applications across automotive, maritime, energy, government and infrastructure
- Lunar is developing a global S-band NGSO satellite network
- Nelco will not have control over Lunar through the investment
- Lunar is currently pre-revenue until full satellite constellation deployment
- Commercial services in India will require applicable regulatory approvals
Nelco’s Next Growth Opportunity?
Nelco’s investment in Lunar Holdco marks an important strategic development as satellite communications evolve from traditional connectivity toward more direct connections with devices and machines.
The combination of D2D, IoT, satellite connectivity and onboard processing could create new opportunities across enterprise and mission-critical applications.
For Nelco, the key opportunity will be its ability to commercialise these capabilities through its existing enterprise relationships and broader Tata Group ecosystem.
However, investors should also note that the opportunity remains subject to satellite deployment, technology development, regulatory approvals, spectrum and licensing requirements, market adoption and other execution factors.
The company itself has cautioned that forward-looking outcomes may differ materially because of these risks.
Overall, the ₹167-crore-plus strategic investment in Elveo gives Nelco exposure to a potentially significant new segment of the satellite communications industry while strengthening its positioning in next-generation D2D and IoT connectivity.
Disclaimer: This article is based on Nelco Limited’s stock exchange disclosures and press release dated August 17, 2026. It is intended for informational purposes only and should not be considered investment advice or a recommendation to buy or sell Nelco shares.