India’s private space race is entering a new phase, and EtherealX is moving fast to secure its place at the center of it. The Bengaluru-based startup is close to raising around $21 million in fresh funding as global investors line up behind its reusable launch vehicle vision.
EtherealX, formally known as Ethereal Exploration Guild, is finalizing a Series A round that was initially set at $15 million. Strong investor demand has now pushed the expected total to about $20.5 million, according to people familiar with the deal.
TDK Ventures is co-leading the round alongside Vietnam-based BIG Capital. Accel is also participating, reinforcing growing confidence in EtherealX’s technical roadmap and early commercial traction.
This funding comes just over a year after the startup closed a $5 million seed round in August 2024. The pace of capital inflow reflects rising global interest in Indian space startups that aim to compete on cost, reliability, and launch availability.
Investor interest is being driven by more than just ambition. EtherealX has already secured contracts worth $130 million from six customers, signaling early demand for its launch services well ahead of its first flight.
That level of commercial commitment is rare at this stage for a space company. It shows that customers are actively looking for alternatives as global launch capacity remains tight.
Founded in 2022, EtherealX was built by a team with deep aerospace roots. The company was started by Manu J. Nair along with former ISRO scientist Shubhayu Sardar, who serves as chief operating officer, and aerospace engineer Prashant Sharma, the chief technology officer.
Together, they are developing Razor Crest Mk-1, a fully reusable medium-lift launch vehicle designed to challenge established players in the global launch market.
The rocket is designed to carry payloads of up to eight tonnes into low Earth orbit. It will also support missions to geostationary transfer orbit and trans-lunar injection, giving customers flexibility across mission profiles.
EtherealX says full reusability sits at the core of its cost advantage. By recovering and reusing key stages, the company aims to reduce per-launch costs while increasing launch frequency.
The startup is targeting its first launch for early 2027. If successful, that timeline would place EtherealX among a small group of private companies globally offering reusable medium-lift capabilities.
Pricing is a major part of the company’s strategy. In earlier comments, Nair said EtherealX plans to offer launch prices ranging from roughly $350 to $2,000 per kilogram.
That pricing undercuts many existing options. SpaceX’s Falcon 9, for comparison, typically charges between $1,600 and $2,000 per kilogram depending on mission requirements.
EtherealX believes this pricing gap creates room to rapidly capture market share. Nair previously said the company could aim for 30% to 40% of the addressable market at launch.
The broader market conditions support that confidence. Demand for satellite launches continues to grow as constellations expand across communications, Earth observation, and defense.
At the same time, launch supply remains constrained. Delays, long booking cycles, and limited providers have pushed customers to seek new options across regions.
India is emerging as a key answer to that gap. The country offers rare geographic advantages that allow access to multiple orbital inclinations from a single launch site.
Regulatory reforms have also opened the door for private companies to build, test, and operate launch vehicles with greater autonomy.
EtherealX is taking advantage of that environment. The company has secured 16 acres of land in Tamil Nadu, which it plans to make operational early next year.
The site will support manufacturing, integration, and testing activities as the company moves closer to flight readiness.
On the engineering side, EtherealX has been quietly advancing key subsystems. The startup is developing a liquid oxygen turbopump assembly for its upper-stage engine, known as Pegasus 2.0.
Recent updates from Nair show progress on propulsion hardware, a critical milestone for any launch vehicle program.
These technical advances align with India’s broader national goals. The government wants to expand the country’s share of the global commercial space market from under 2% today to as much as 10% over the next decade.
Officials estimate India’s space economy could grow to $40 billion to $45 billion within eight to ten years. Much of that growth is expected to come from private startups like EtherealX.
Global investors are paying close attention. For venture firms, India offers a chance to diversify beyond the US and Europe while tapping into strong engineering talent and lower development costs.
TDK Ventures’ involvement highlights that shift. The firm has a track record of backing deep-tech companies that bridge hardware, manufacturing, and long-term industrial impact.
Accel’s participation further strengthens EtherealX’s credibility, especially as the company prepares for capital-intensive development and long test cycles.
For EtherealX, the upcoming funding round is about more than cash. It provides validation as the startup moves from design and testing toward execution.
The company declined to comment on the fundraising discussions. TDK Ventures, Accel, and BIG Capital also did not respond to requests for comment.
Still, momentum is clear. With contracts in hand, land secured, engines in development, and investors on board, EtherealX is positioning itself as one of India’s most serious launch contenders.
If the company delivers on its timeline, it could reshape how customers think about launch options from the region.
And in a market hungry for capacity, reliability, and cost control, that opportunity may arrive at exactly the right time.
