Indian SpaceX competitor EtherealX sees its valuation soar fivefold as it prepares for engine testing

EtherealX Achieves Major Valuation Leap with New Funding

Ethereal Exploration Guild, widely recognized as EtherealX, has seen its valuation soar to $80.5 million—a 5.5-fold increase—following its most recent investment round. The Indian space technology company is working on a fully reusable launch vehicle and is preparing for engine hot-fire trials in anticipation of a technology demonstration flight scheduled for 2027.

Successful Series A Funding Round

Based in Bengaluru, EtherealX has finalized a $20.5 million Series A round that was oversubscribed, with TDK Ventures and BIG Capital leading the investment, as previously reported by TechCrunch. Other investors include Accel, Prosus, YourNest, BlueHill, Campus Fund, and Riceberg Ventures. This funding follows a $5 million seed round in August 2024, which valued the company at $14.6 million.

India’s Expanding Space Ambitions

As India aims to expand its space sector beyond small launch vehicles and component supply contracts, the country is targeting an increase in its space economy from $8 billion to $45 billion over the next ten years. EtherealX is one of the emerging companies gaining attention in this rapidly evolving landscape.

Meeting Global Launch Demands

With satellite operators worldwide seeking greater launch availability and scheduling flexibility, EtherealX is positioning itself to compete in a market where SpaceX’s Falcon 9 sets the standard for cost and frequency. The company’s fully reusable launch system is engineered to recover both the booster and upper stage, a strategy that could significantly lower launch expenses and boost launch rates, even without a dedicated satellite constellation to ensure frequent missions.

In-House Engine Development

EtherealX is building two proprietary engines: the “Pegasus” upper-stage engine, delivering 80 kilonewtons of thrust, and the “Stallion” booster engine, capable of 1.2 meganewtons. Hot-fire testing for both engines is planned for June and July. Thrust, measured in kilonewtons and meganewtons, reflects the force an engine can exert to lift a rocket.

Upcoming Demonstration and Commercial Launches

According to co-founder and CEO Manu J. Nair, the company is targeting a demonstration flight window between November and December 2027, with commercial launches expected to commence by late 2028.

Key Performance Metrics

Rocket engineers closely monitor specific impulse—a key indicator of fuel efficiency—alongside thrust, to determine how much payload a rocket can transport with a given amount of propellant.

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Advanced Engine Technology

The Pegasus engine achieves a vacuum-specific impulse of 323 seconds and utilizes a proprietary “full-flow segregated cooling cycle.” It also incorporates a turbopump produced through additive manufacturing. The Stallion booster engine, on the other hand, operates using a gas-generator cycle and delivers a sea-level specific impulse of 306 seconds.

EtherealX’s additively manufactured turbopump assembly for the upper-stage engine

Image Credits: EtherealX

Razor Crest Mk-1: Engine Clustering

Nair shared that the company’s main medium-lift rocket, Razor Crest Mk-1, will feature multiple engines per stage—nine Stallion engines on the booster and fifteen Pegasus engines on the upper stage.

Pushing the Boundaries of Reusability

Unlike SpaceX’s Falcon 9, which primarily recovers its first-stage booster, EtherealX is designing its vehicle to retrieve both the booster and the upper stage, aiming for a higher level of reusability.

Payload Capacity and Pricing

EtherealX’s rocket is designed to deliver up to 24.8 metric tonnes in an expendable setup, 22.8 tonnes with partial reusability, and approximately 8 tonnes when fully reusable. The company is targeting launch costs ranging from $350 to $2,000 per kilogram, depending on the mission profile and frequency.

Infrastructure and Expansion

To support its development goals, EtherealX operates a rocket engine testing facility called Base 001 in Tamil Nadu, focused on upper-stage engine validation. Additionally, the company has acquired a 150-acre site in Andhra Pradesh’s planned space city, which is expected to become operational by mid-2026 for integrated engine and stage testing.

Commercial Partnerships and Growth

EtherealX has secured launch agreements totaling roughly $130 million with clients such as Japan’s SpaceBD and Taiwan’s space agency, TASA, as it seeks to build early commercial momentum ahead of its first demonstration mission.

Utilizing New Capital for Growth

According to Nair, the latest funding will be allocated to complete flight qualification of the Stallion booster engine and to conduct clustered-firing tests of the Pegasus upper-stage engines. The company currently employs 67 staff members and plans to expand to around 90 in the coming two months, increasing manufacturing output and testing activities as it prepares for its inaugural demonstration launch.