India’s EtherealX is building a reusable rocket to challenge SpaceX and is close to a $21 million funding boost.
The Bengaluru-based space tech startup EtherealX is nearing the close of a $21 million funding round, a move that highlights the rising momentum of India’s private space industry and its ambition to compete globally. Led by TDK Ventures and BIG Capital, with participation from Accel, this round exceeds initial targets and signals deep investor confidence in the company’s vision.
Founded in 2022 by an ex-ISRO scientist and aerospace veterans, EtherealX is developing a fully reusable medium-lift launch vehicle called Razor Crest Mk-1. The rocket is designed to deliver up to eight tonnes to low Earth orbit, aiming for a first launch by early 2027. The startup has already secured substantial commercial interest, with $130 million in contracts from six customers, proving the market is eager for new launch providers. This demand isn’t surprising given the current global shortage of launch capacity.
The financial backing builds on a $5 million seed round in August 2024, showing a rapid scaling of ambition and execution. With fresh capital, the company plans to accelerate development of its innovative propulsion systems, including the Pegasus 2.0 upper-stage engine and a liquid oxygen turbopump assembly. These components are critical to achieving both reusability and cost efficiency, two pillars of EtherealX’s competitive strategy.
Perhaps the most compelling aspect of EtherealX’s approach is its aggressive pricing. According to founder Manu J. Nair, the startup aims to deploy payloads at a cost ranging from $350 to $2,000 per kilogram. This undercuts SpaceX’s Falcon 9, which typically sits between $1,600 and $2,000 per kilogram. At that price point, EtherealX is targeting a 30-40% share of the market, a bold goal that could significantly disrupt the launch industry if realized. It positions the startup not just as a regional player, but as a serious contender on the world stage.
India’s strategic advantages further bolster this potential. The country offers geographic and regulatory benefits for space launches, providing access to multiple orbital inclinations from a single site. The government’s push to grow its space economy to between $40 billion and $45 billion over the next decade is creating a fertile environment for startups. The nation aims to grab an 8-10% share of the global commercial space market, a target that private companies like EtherealX are poised to help achieve.
On the ground, the company is solidifying its infrastructure. It has secured a 16-acre plot in Tamil Nadu, with plans to make the site operational early next year. This physical presence underscores a commitment to long-term growth and manufacturing capability within India, a crucial step for building reliable launch vehicles at scale.
EtherealX’s trajectory reflects a broader shift in the global space ecosystem, where agile private firms are stepping up to fill launch capacity gaps while driving down costs. By combining deep technical expertise from former ISRO scientists with aggressive commercial targets and strong investor backing, the startup is making a compelling case for India’s rise in space. As the race to reduce launch costs heats up, EtherealX’s progress will be a key indicator of how effectively new players can challenge established giants like SpaceX. The coming years will reveal if their reusable rocket can turn ambitious promises into orbital reality.
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