Ethereal Exploration Guild, an Indian space technology startup better known as EtherealX — developing a fully reusable medium-lift launch vehicle — is close to securing about $21 million in a new funding round led by TDK Ventures, with Accel among the participants, according to TechCrunch.
Originally planned as a $15 million Series A, the round attracted strong demand from investors and is now expected to reach about $20.5 million, three people familiar with the matter told TechCrunch. The funding comes more than a year after the startup raised a $5 million seed round in August 2024.
TDK Ventures is leading the round with Vietnam-based venture capital firm BIG Capital, with Accel also participating, the sources said.
The funding talks follow EtherealX securing $130 million worth of contracts from six customers, the sources told TechCrunch, highlighting early commercial demand for its launch services.
Founded in 2022 by Manu J. Nair along with former Indian Space Research Organization (ISRO) scientist Shubhayu Sardar, who serves as chief operating officer, and aerospace engineer Prashant Sharma, chief technology officer, EtherealX aims to take on SpaceX with a medium-lift launch vehicle called the M-1 Razor. The rocket, designed to be fully reusable, is expected to place up to eight tons into low Earth orbit and will also be capable of carrying payloads to geostationary transfer and interlunar injection orbits.
The Bengaluru-based startup says its launch system will deliver cost-effectiveness for customers while helping to address a global shortage of launch capacity, with a first launch targeted for early 2027.
In an interview with TechCrunch last year, Nair said that EtherealX’s rocket could offer launch prices ranging from about $350 to $2,000 per kilogram. By comparison, SpaceX’s Falcon 9 typically charges between $1,600 and $2,000 per kilogram.
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“At the price point we’ll be entering the market at, we’ll comfortably capture 30% to 40% of it,” Nair said at the time.
India has emerged as one of the few countries in the world with a geographic and regulatory advantage for space launches, offering access to multiple orbital inclinations from a single launch site. The growing space technology ecosystem is also attracting global investors looking for markets that can complement space development in the United States, Europe and other key regions.
EtherealX has secured 16 acres of land in the southern Indian state of Tamil Nadu, which it plans to launch early next year. The startup has also developed key components, including a liquid oxygen (LOX) turbopump assembly for the upper stage engine, known as Pegasus 2.0, according to a recent LinkedIn position by Nair.
India aims to dramatically expand its footprint in the global commercial space industry, aiming for a market share of 8% to 10%. over the next decade from less than 2% today, with much of this growth expected to be driven by private start-ups. The country is working towards a $40 billion to $45 billion space economy within the next eight to 10 years, Indian Space Minister Jitendra Singh said recently.
Nair declined to comment. TDK Ventures, Accel and BIG Capital did not respond to requests for comment.
