Toronto-based startup Kepler Communications has secured a $7 million federal investment to continue and commercialize its next-generation optical data relay satellite network in an effort to support Canada’s sovereign defence and space capabilities.
The funding, delivered through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), comes at an important time for the company. In January, Kepler successfully launched Tranche 1 of its network, deploying 10 optical communications satellites into low Earth orbit (LEO). This latest capital injection is earmarked to advance the company’s Tranche 1 engineering.
For the federal government, the investment is tied to national security and domestic procurement. The FedDev Ontario funding positions Kepler to be a key player in Canada’s Defence Enhanced Surveillance from Space Project (DESP).
“Kepler is thankful to receive this support from FedDev Ontario,” said Mina Mitry, Chief Executive Officer and Co-Founder of Kepler Communications. “This investment will support work underway for our Tranche 1 optical network. Kepler will also leverage this investment to support future intelligence, surveillance, and reconnaissance [ISR] requirements with the Department of National Defence.”
The announcement was made by the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for FedDev Ontario, as part of a broader $14.5 million package aimed at Southern Ontario’s aerospace and defence ecosystem.
“By investing in these companies, [we are] building sovereign capabilities at home while ensuring Canada remains a strong, trusted partner in the rapidly evolving space and defence landscape,” Solomon noted.
Also receiving funding in the announcement was Vaughan-based Dishon Limited, which secured $7.5 million. The precision manufacturing company will use the funds to adopt state-of-the-art machining equipment at a new 30,000-square-foot facility, scaling its production of complex components for commercial space, military aviation, and satellite platforms.
The funding is part of the Regional Defence Investment Initiative (RDII), a $357.7-million national program designed to integrate domestic businesses into global defence supply chains.