TDK Ventures, Accel set to back India’s EtherealX in reusable launch vehicle push: sources

Ethereal Exploration Guild, known as EtherealX, is on the verge of raising approximately $21 million in a funding round co-led by TDK Ventures, with participation from Accel, according to insider sources. Originally targeting a $15 million Series A, the round has exceeded expectations due to strong interest from investors and is now projected to reach around $20.5 million. This funding comes a year after the startup successfully completed a $5 million seed round in August 2024. TDK Ventures is partnering in this round with BIG Capital, a Vietnam-based venture capital firm. Notably, EtherealX has already secured contracts worth $130 million from six clients, signaling a promising demand for its launch services. Founded in 2022 by Manu J. Nair, alongside former ISRO scientist Shubhayu Sardar and aerospace engineer Prashant Sharma, EtherealX is aiming to compete with SpaceX by developing the Razor Crest Mk-1, a fully reusable medium-lift launch vehicle. This rocket is designed to transport up to eight tonnes into low Earth orbit and can also deliver payloads to geostationary transfer and trans-lunar injection orbits. The Bengaluru-based company promises cost efficiencies for clients while addressing a global shortfall in launch capacity, with its inaugural launch planned for early 2027. Nair previously indicated that the launch prices for EtherealX could range from $350 to $2,000 per kilogram, significantly lower than SpaceX's Falcon 9, which charges between $1,600 and $2,000 per kilogram. Nair suggested that this competitive pricing could allow EtherealX to capture 30% to 40% of the market. India's unique geographic and regulatory advantages for space launches are becoming increasingly attractive to global investors, as the country aims to expand its share of the global commercial space market from less than 2% today to 8% to 10% over the next decade. The Indian Space Minister, Jitendra Singh, has projected that the nation could develop a $40 billion to $45 billion space economy in the next eight to ten years, driven largely by private startups. EtherealX is also making strides in its operational preparations, having acquired 16 acres of land in Tamil Nadu, which is slated to be operational by early next year. The startup is currently working on essential components for its launch vehicle, including the liquid oxygen turbopump assembly for its upper-stage engine, Pegasus 2.0. Despite the ambitious plans, Nair declined to provide further comments, and representatives from TDK Ventures, Accel, and BIG Capital did not respond to requests for information.