India’s Space Ambitions Soar: Can EtherealX Forge a New Path to Orbit? 

EtherealX, an Indian space startup, has seen its valuation surge to $80.5 million after a $20.5 million funding round, as it positions itself as a potential competitor in the reusable launch vehicle market. The Bengaluru-based company is developing the fully reusable Razor Crest Mk-1 rocket, which aims to recover both its booster and upper stage, and is preparing for crucial engine tests of its in-house “Stallion” and “Pegasus” engines ahead of a planned 2027 demonstration flight. Operating within India’s ambitious goal to grow its space economy, EtherealX has secured non-binding customer agreements worth $130 million, representing a significant bet on providing more flexible and cost-effective launch alternatives in a sector currently dominated by established players like SpaceX.

India’s Space Ambitions Soar: Can EtherealX Forge a New Path to Orbit? 

In the global race for the stars, a new contender is making waves not from the well-trodden paths of Cape Canaveral or Boca Chica, but from Bengaluru. Ethereal Exploration Guild, known as EtherealX, has just secured a $20.5 million Series A funding round, catapulting its valuation to $80.5 million—a 5.5x increase. This isn’t just another startup story; it’s a bold chapter in India’s quest to transform from a renowned low-cost satellite launcher into a dominant, innovative force in the new space economy. With engine tests imminent and a fully reusable rocket on the drawing board, EtherealX is staking a claim in a market desperate for alternatives. But can it truly challenge the established giants and redefine what’s possible? 

Beyond Funding: Decoding the $80.5 Million Bet 

The oversubscribed round, led by TDK Ventures and BIG Capital with participation from Accel and Prosus, signals more than just investor enthusiasm. It’s a calculated vote of confidence in a specific vision: deep, dual-stage reusability. While SpaceX’s Falcon 9 revolutionized the industry with its reusable first stage, its upper stage is still expended on every flight. EtherealX’s proposed Razor Crest Mk-1 vehicle aims to bring both the booster and the upper stage back, a technical ambition that, if achieved, would place them in a rare echelon of launch providers. 

This funding leap, from a $14.6 million seed valuation in 2024 to over $80 million today, mirrors India’s own astronomical targets. The nation aims to grow its space economy from $8 billion to $45 billion within a decade. Investors aren’t just betting on a rocket; they’re betting on India’s regulatory shift, its engineering talent pool, and a global market hungry for more launch options and scheduling flexibility beyond the current duopoly. 

The Engine of Ambition: Pegasus and Stallion Under the Microscope 

At the heart of EtherealX’s strategy are two in-house engines, the 80 kN “Pegasus” for the upper stage and the massive 1.2 MN “Stallion” for the booster. The upcoming hot-fire tests (targeted for June-July 2026) will be their first real-world proof point. 

Technical ambition meets practical challenge: The Pegasus engine’s claimed 323 seconds of vacuum-specific impulse is a key metric of efficiency. For context, SpaceX’s Merlin Vacuum engine on the Falcon 9 upper stage boasts around 348 seconds. EtherealX is in a competitive range, but achieving this with a “full-flow segregated cooling cycle” and an additively manufactured turbopump is a formidable engineering task. Similarly, the gas-generator cycle of the Stallion engine is a proven, albeit less efficient, pathway—a pragmatic choice for a first booster engine. 

The real test will be in clustering: nine Stallion engines on the booster and fifteen Pegasus on the upper stage. Engine clustering is a symphony of precision, where synchronization and fault tolerance are paramount. A single anomaly can lead to catastrophic failure, a lesson learned painfully by many in the industry. EtherealX’s move to a dedicated 150-acre manufacturing and testing campus in Andhra Pradesh by mid-2026 shows they are building the infrastructure for this complex integration phase. 

The Reusability Equation: A Calculated Gamble on Cost and Cadence 

EtherealX’s projected pricing—$350 to $2,000 per kilogram—and payload capacity tell a strategic story. The fully reusable configuration (8 tons to orbit) is not aimed at maxing out mass, but at optimizing for frequency and cost. This is a direct play for the growing small to medium satellite constellation market, which values dedicated rides and flexible scheduling as much as low cost. 

CEO Manu J. Nair’s revelation of $130 million in non-binding MOUs with clients like Japan’s Space BD and Taiwan’s TASA is crucial. It demonstrates early market validation, a signal that potential customers are willing to engage with a new entrant promising an alternative model. However, the space industry is littered with signed MOUs that never converted into launch contracts, awaiting that first successful demonstration flight. 

The Human and Historical Context: Why India, Why Now? 

EtherealX’s story is inextricably linked to India’s space heritage and its future. For decades, the Indian Space Research Organisation (ISRO) has been a global pioneer in cost-effective satellite launches and famed Martian missions. The Indian private space sector is now building on this foundation of talent, institutional knowledge, and a culture of “frugal engineering.” 

But EtherealX represents a new breed. It’s not looking to merely replicate ISRO’s model or build small launchers. It’s attempting a leapfrog move directly into the medium-lift, fully reusable segment—a move akin to a startup bypassing the desktop computer to build a smartphone. This ambition carries immense risk. The gap between a successful engine test and a reliable, commercially operational orbital rocket is vast, often described as “the valley of death” for aerospace startups. 

The team’s planned growth from 67 to 90 employees in the coming months highlights the intense, hands-on phase ahead. Rocket development is a deeply human endeavor—a race against time, physics, and budgets, powered by long nights and relentless problem-solving. 

The Bottom Line: A Catalyst, Not Just a Contender 

Labeling EtherealX a “SpaceX rival” today is more aspirational than operational. SpaceX has an insurmountable head start in experience, flight heritage, and vertical integration. The true significance of EtherealX lies elsewhere. 

It is a catalyst for the Indian ecosystem, proving that venture capital sees high-stakes, deep-tech space hardware as a viable bet. It provides a focal point for top engineering talent wanting to work on cutting-edge space tech within India. Most importantly, it represents a bold alternative vision for reusability. Even if the path to dual-stage recovery is long, the attempt itself pushes the entire industry forward. 

The November-December 2027 window for their technology demonstration flight is a date the global aerospace community will now be watching. Success would not just validate EtherealX; it would announce India’s private sector as a full-spectrum player in the space age. Failure would be a setback, but in the high-stakes game of orbital access, the lessons learned would still fuel the next attempt. 

In the end, EtherealX’s journey is about more than one rocket. It’s a test of whether the next great leap in space access can come from a new geography and a new playbook, challenging not just the market leaders, but the very assumptions of how we reach for the stars.