Astra Space Seeks $250 Million as Rocket Company Pursues Fresh Growth

U.S. rocket company Astra Space is seeking to raise $250 million at a valuation of about $1 billion as it attempts to revive its business and expand its presence in the commercial and defence space markets.

Chief Executive Officer Chris Kemp told Reuters that the fundraising round is expected to close this quarter. The California based company has been approaching investors with plans to expand its mobile launch rocket programme and satellite propulsion business.

Astra is seeking to transform itself into a broader space platform company after years of financial difficulties. The company was once valued at more than $2 billion following its public listing in 2021, but was taken private in 2024 for just $11.25 million after a series of unsuccessful rocket launches.

The latest fundraising effort follows an $80 million financing round last year, which was used to cover legal expenses, settle shareholder lawsuits and refinance the company following the collapse of its original rocket programme.

Unlike major competitors that are focusing on reusable rockets, Astra is developing low cost expendable launch vehicles designed to provide rapid satellite deployment from dispersed locations.

Kemp said the company’s approach could appeal to military customers seeking greater flexibility and resilience for space based assets. Astra aims to establish a large network of launch locations that could make it harder for potential adversaries to identify and target its facilities.

The company has abandoned its original rocket after achieving only two successful launches in six attempts and is now developing the larger Rocket 4 vehicle, which is expected to begin launches from 2027.

Astra is also expanding its satellite propulsion business and says it has already sold hundreds of thrusters. Kemp said the company expects Rocket 4 to offer launch prices of around $5 million, significantly below some competing services.

The fundraising campaign represents a major test for Astra as it seeks to rebuild investor confidence and establish a sustainable position in an increasingly competitive global space industry.