Indian spacetech startup Ethereal Exploration Guild, better known as EtherealX, is on the verge of closing a significant funding round, securing approximately $21 million. The investment, co-led by TDK Ventures and Vietnam-based venture capital firm BIG Capital, with participation from Accel, will fuel the development of its fully reusable medium-lift launch vehicle.

Initially targeting $15 million for its Series A, the round saw strong investor demand, pushing the expected total to about $20.5 million. This funding follows the startup's $5 million seed round in August 2024.

Early Commercial Traction and Ambitious Goals

The substantial investment follows EtherealX's success in securing $130 million worth of contracts from six customers, underscoring robust early commercial demand for its launch services.

Founded in 2022 by Manu J. Nair, alongside former Indian Space Research Organisation (ISRO) scientist Shubhayu Sardar (Chief Operating Officer) and aerospace engineer Prashant Sharma (Chief Technology Officer), the Bengaluru-based startup is developing the Razor Crest Mk-1. This fully reusable medium-lift rocket is designed to deploy up to eight tonnes into low Earth orbit and will also be capable of delivering payloads to geostationary transfer and trans-lunar injection orbits.

EtherealX aims to challenge SpaceX's dominance by offering cost efficiencies to customers while addressing a global shortage of launch capacity. The company targets its first launch for early 2027.

Competitive Pricing Strategy

EtherealX plans to significantly undercut competitors on price. In a previous interview, Nair stated that the company's rocket could offer launch prices ranging from $350 to $2,000 per kilogram. By comparison, SpaceX's Falcon 9 typically charges between $1,600 and $2,000 per kilogram.

"At the price point at which we will enter the market, we’ll comfortably capture 30% to 40% of it," Nair said at the time.

India's Rising Space Economy

India is rapidly emerging as a global hub for space launches, leveraging geographic and regulatory advantages that allow access to multiple orbital inclinations from a single launch site. The nation's burgeoning spacetech ecosystem is increasingly attracting international investors, who view it as a complementary market to established space development regions like the United States and Europe.

The country is aiming to dramatically expand its footprint in the global commercial space industry, targeting an 8% to 10% market share over the next decade, up from less than 2% today. Much of this growth is expected to be driven by private startups, with India working toward a $40 billion to $45 billion space economy within the next eight to ten years, according to Indian Space Minister Jitendra Singh.

Operational Progress

EtherealX has secured 16 acres of land in the southern Indian state of Tamil Nadu, which it plans to make operational early next year. The startup is also actively developing key components, including a liquid oxygen (LOX) turbopump assembly for its upper-stage engine, known as Pegasus 2.0, as recently shared by Nair in a LinkedIn post.

Manu J. Nair declined to comment on the funding round. TDK Ventures, Accel, and BIG Capital did not respond to requests for comment.