EtherealX Soars: Indian Space Tech Startup Valuation Skyrockets to $80.5 Million
Ethereal Exploration Guild, popularly known as EtherealX, has made headlines by significantly increasing its valuation by 5.5 times to a remarkable $80.5 million following its recent funding round. The Indian space technology startup is focused on developing a fully reusable launch vehicle and is gearing up for engine hot-fire tests ahead of its inaugural technology demonstration flight slated for 2027.
Based in Bengaluru, EtherealX recently announced the closure of an oversubscribed Series A funding round, raising $20.5 million. The round was spearheaded by TDK Ventures and BIG Capital, with notable participation from Accel, Prosus, YourNest, BlueHill, Campus Fund, and Riceberg Ventures. This funding comes on the heels of a $5 million seed round in August 2024, which valued the startup at $14.6 million.
India’s Growing Space Economy
India is on a mission to advance its space ecosystem, shifting its focus beyond small launchers and component contracts. The country’s target is to expand its space economy to a whopping $45 billion from the current $8 billion in just a decade. EtherealX stands out among startups in this rapidly evolving landscape.
In a market dominated by SpaceX’s Falcon 9, which has set a high standard for pricing and launch frequency, satellite operators around the globe are increasingly seeking enhanced launch capacities and flexible scheduling. EtherealX aims to fulfill this demand with its fully reusable vehicle, which is designed to safely return both the booster and upper stage. If successful, this innovative approach could dramatically reduce per-launch costs and enhance flight frequency.
Innovative Engine Development
EtherealX is pioneering two engines in-house: the “Pegasus” upper-stage engine, producing 80 kilonewtons of thrust, and the “Stallion” booster engine, delivering 1.2 meganewtons of thrust. Hot-fire tests for these engines are set to occur between June and July. Thrust measurements indicate how much lifting force an engine can provide, while specific impulse is a critical metric for evaluating fuel efficiency.
According to co-founder and CEO Manu J. Nair, EtherealX is targeting a launch window for its technology demonstration vehicle in November-December 2027. The startup anticipates that commercial missions will follow, expected to commence by the end of 2028.
Engine Features and Future Plans
The Pegasus engine boasts a vacuum-specific impulse of 323 seconds and incorporates what EtherealX describes as a proprietary “full-flow segregated cooling cycle.” This innovative engine also features an additively manufactured turbopump. Meanwhile, the Stallion booster engine uses a gas-generator cycle and provides 306 seconds of sea-level specific impulse.
Nair elaborated that EtherealX intends to cluster multiple engines for its primary medium-lift vehicle, the Razor Crest Mk-1, integrating nine Stallion engines on the booster and 15 Pegasus engines on the upper stage. This engineering strategy is set to differentiate EtherealX from competitors like SpaceX, which primarily reuses its first-stage booster while its upper stage is expended.
Launch Capabilities and Partnerships
EtherealX’s vehicle is designed to carry substantial payloads, anticipated to transport up to 24.8 tonnes in an expendable configuration, 22.8 tonnes in a partially reusable setting, and about 8 tonnes when fully reusable. The startup aims to establish pricing that ranges from $350 to $2,000 per kilogram based on the configuration and launch frequency.
To support its development, EtherealX operates a rocket engine test facility in Tamil Nadu, dubbed Base 001, which specializes in upper-stage engine qualifications. Further, it has secured a 150-acre manufacturing and testing campus in Andhra Pradesh’s prospective space city, set to become operational by mid-2026, facilitating integrated engine and stage testing.
Looking Ahead
In its quest for early commercial demand, EtherealX has signed memoranda of understanding for launch contracts worth around $130 million with clients, including Japan’s SpaceBD and Taiwan’s TASA. The recent funding will assist in finalizing the flight qualification of the Stallion booster engine and conducting clustered firing tests of the Pegasus engines. Currently, EtherealX employs 67 professionals and expects to expand this to approximately 90 as it ramp-ups manufacturing and testing in preparation for its first demonstration flight.
This remarkable journey of EtherealX highlights the dynamic evolution of the Indian space tech sector and its promising future. For more news related to technology advancements, feel free to check out our blog at Axom Live.
