Indian SpaceX rival EtherealX hits 5x valuation as it readies engine tests

Ethereal Exploration Guild, widely recognized as EtherealX, has achieved a remarkable valuation increase of 5.5 times, now standing at $80.5 million following its recent funding round. The startup, based in Bengaluru, is dedicated to developing a fully reusable launch vehicle and is gearing up for engine hot-fire tests in preparation for its inaugural technology demonstration flight, slated for 2027. The company successfully closed an oversubscribed Series A funding round amounting to $20.5 million, led by TDK Ventures and BIG Capital, with participation from notable investors including Accel, Prosus, YourNest, BlueHill, Campus Fund, and Riceberg Ventures. This funding follows a $5 million seed round in August 2024, which initially valued EtherealX at $14.6 million. As India aims to expand its space ecosystem beyond small launchers and component contracts—hoping to increase its space economy from $8 billion to an impressive $45 billion within the next decade—EtherealX is emerging as a key player. With satellite operators globally seeking enhanced launch capacity and scheduling flexibility, EtherealX is positioning itself to compete against established players like SpaceX, whose Falcon 9 has set industry standards for pricing and launch frequency. EtherealX is developing two in-house engines: the 80-kilonewton “Pegasus” upper-stage engine and the 1.2-meganewton “Stallion” booster engine, with hot-fire tests anticipated for June to July of this year. The startup aims to achieve a launch window for its technology demonstration vehicle in November to December 2027, with commercial missions expected to commence by the end of 2028, according to co-founder and CEO Manu J. Nair. The Pegasus engine boasts a vacuum-specific impulse of 323 seconds and employs a proprietary “full-flow segregated cooling cycle,” complemented by an additively manufactured turbopump. In contrast, the Stallion engine utilizes a gas-generator cycle, delivering 306 seconds of sea-level specific impulse. EtherealX plans to utilize a clustered engine approach for its main medium-lift vehicle, the Razor Crest Mk-1, featuring nine Stallion engines on the booster and 15 Pegasus engines on the upper stage. This design aims to achieve a higher level of reusability than competitors, allowing the vehicle to return both the booster and upper stage. The vehicle is projected to carry up to 24.8 tonnes in an expendable configuration, 22.8 tonnes in a partially reusable state, and approximately 8 tonnes when fully reusable. EtherealX is targeting a competitive pricing range between $350 and $2,000 per kilogram, influenced by the configuration and launch cadence. To facilitate its development efforts, EtherealX operates a rocket engine test site in Tamil Nadu, known as Base 001, focused on upper-stage engine qualifications. Additionally, the startup has secured a 150-acre manufacturing and testing campus in Andhra Pradesh’s planned space city, anticipated to become operational by mid-2026 for integrated engine and stage testing. With signed launch memoranda of understanding worth around $130 million with clients, including Japan’s SpaceBD and Taiwan’s TASA, EtherealX is eager to tap into early commercial opportunities ahead of its first demonstration flight. The latest investment will be directed toward finalizing the flight qualifications of the Stallion booster engine and conducting clustered-firing tests for the Pegasus upper-stage engines. Currently, EtherealX employs 67 individuals and aims to expand its team to approximately 90 in the coming months to enhance manufacturing capacity and increase testing frequencies ahead of its inaugural flight.