Bengaluru-based spacetech startup Ethereal Exploration Guild, known as EtherealX, has raised $20.5 million in a Series A funding round to advance its work on reusable launch vehicles. The round was co-led by TDK Ventures and BIG Capital, with participation from Accel, Prosus, YourNest Venture Capital, BlueHill Capital, Campus Fund and Riceberg Ventures, according to media reports.
The funding comes less than a year after the company raised $5 million in a seed round in August 2024. That round was led by YourNest Venture Capital and included investors such as BIG Global Investments JSC, BlueHill Capital, Campus Fund, Golden Sparrow Ventures, Karan Bhagat and Yatin Shah of IIFL Wealth, Kiran Shetty and Akhilesh Agarwal.
Founded in 2022, EtherealX is working on launch systems aimed at reducing the cost of sending payloads into orbit. The startup was set up by Manu J. Nair, Shubhayu Sardar and Prashanth Sharma, and has positioned itself in the growing private space sector in India.
The latest funding is expected to be used primarily for the development of the company’s first fully reusable medium-lift launch vehicle, named Razor Crest Mk-1. The vehicle is being designed to support commercial satellite launches and future deep-space missions.
EtherealX Funding
Razor Crest Mk-1 is planned to carry payloads of up to eight tonnes into low Earth orbit. The launch vehicle is also being designed to deliver payloads to geostationary transfer orbit and trans-lunar injection orbits, placing it in the medium-lift category within the global launch market.
In parallel, EtherealX is also developing a larger fully reusable launch vehicle in the 25-tonne class. According to available information, the company has built two rocket engines required to power the two stages of this system within three and a half years of operations.
The startup has stated that its larger configuration could eventually place up to 24.8 tonnes into low Earth orbit and around 10.8 tonnes into geosynchronous transfer orbit. These capabilities would position EtherealX among a small group of private companies globally working on reusable medium-lift rockets.
A key part of the company’s design approach is reusability, which is widely seen as essential to lowering launch costs. EtherealX has indicated a long-term aim to bring orbital transport costs down to between $500 and $1,000 per kilogram.
Technology and Partnerships
The reusable upper stage of EtherealX’s launch system is based on a proprietary rocket engine feed cycle known as the Full Flow Segregated Cooling Cycle. The company has said this design is supported by in-house simulation tools and test infrastructure to improve reliability and shorten development timelines.
EtherealX has already manufactured an 80 kN reusable upper-stage engine, named Pegasus. Development and testing of such engines are considered critical milestones for any launch vehicle programme.
The company has also entered into collaboration agreements with IN-SPACe, ISRO and other national space agencies. In addition, it is working with commercial satellite operators, launch aggregators and launch ports in different parts of the world.
India’s private space sector has seen rising investor interest in recent years, supported by policy changes and increasing demand for satellite launches. With the global space economy projected to grow to about $1.8 trillion by 2035, companies like EtherealX are operating in a market that is expected to expand steadily over the next decade.
