Bengaluru-based space technology startup Ethereal Exploration Guild, operating under the brand EtherealX, has raised $20.5 million in a Series A funding round, marking a major milestone in its journey to build reusable launch vehicles from India. The round was co-led by TDK Ventures and BIG Capital, with participation from Accel, Prosus, YourNest Venture Capital, BlueHill Capital, Campus Fund, and Riceberg Ventures.
The fresh capital will help EtherealX accelerate development of its launch vehicle programme at a time when global demand for affordable and frequent access to space is rising sharply.
Credits: Yourstory
Strong Follow-On After $5 Mn Seed Round
The Series A comes just months after EtherealX closed a $5 million seed round in August 2024, led by YourNest Venture Capital. That round also saw participation from BIG Global Investments JSC, BlueHill Capital, Campus Fund, Golden Sparrow Ventures, IIFL Wealth executives Karan Bhagat and Yatin Shah, and individual investors Kiran Shetty and Akhilesh Agarwal.
The back-to-back fundraises highlight growing investor confidence in the startup’s engineering roadmap and its ability to execute complex space hardware programmes in a relatively short timeframe.
Razor Crest Mk-1 at the Centre of Capital Deployment
EtherealX said the newly raised funds will primarily be deployed towards developing Razor Crest Mk-1, its first fully reusable medium-lift launch vehicle. Reusability lies at the core of the company’s strategy, aimed at dramatically lowering launch costs while improving turnaround times between missions.
By focusing on reusable architecture from the outset, EtherealX hopes to avoid the inefficiencies that have historically made space access expensive and limited to a handful of players.
Founders Building Indigenous Launch Capabilities
Founded in 2022 by Manu J. Nair, Shubhayu Sardar, and Prashanth Sharma, Ethereal Exploration Guild was created with the vision of developing indigenous launch solutions capable of serving both Indian and global satellite markets.
The founding team set its sights on the medium-lift segment, which is increasingly critical as satellite constellations grow in size and complexity, requiring rockets that can carry heavier payloads to multiple orbital destinations.
Medium-Lift Rocket With Multi-Orbit Missions
The Razor Crest Mk-1 is being designed as a versatile launch vehicle capable of supporting a wide range of missions. EtherealX has stated that the rocket will be able to place up to eight tonnes into low Earth orbit (LEO) and deliver payloads to geostationary transfer orbit (GTO) as well as trans-lunar injection trajectories.
Beyond Mk-1, the company has also disclosed plans for a fully reusable medium-lift launch vehicle in the 25-tonne class. According to EtherealX, the system under development can carry up to 24.8 tonnes to LEO and 10.8 tonnes to GTO, positioning it among the higher-capacity commercial launch systems being built in India.
In-House Engines and Cost-Focused Engineering
A key differentiator for EtherealX is its emphasis on in-house engine development. The startup claims to have developed two rocket engines for its reusable launch vehicle stages within just three and a half years.
This vertically integrated approach reduces reliance on external suppliers, helps control costs, and allows faster design iterations. EtherealX believes this will translate into improved reliability and shorter vehicle refurbishment cycles between launches.
Proprietary Technology and Strategic Collaborations
EtherealX is also developing a reusable upper stage powered by a proprietary engine feed cycle called the Full Flow Segregated Cooling Cycle. The company has set an ambitious goal of reducing orbital transport costs to $500–$1,000 per kilogram, a price point that could significantly broaden access to space.
The startup has already manufactured its 80 kN reusable upper-stage engine, Pegasus, and has entered into collaboration agreements with IN-SPACe, ISRO, other national space agencies, and several commercial satellite operators, launch aggregators, and launch ports worldwide.
Credits: YUGMA
Eyeing a Trillion-Dollar Space Economy
With the global space economy projected to reach $1.8 trillion by 2035, EtherealX is positioning itself as a serious contender in the next wave of launch service providers. By combining reusable rocket technology, in-house engineering, and aggressive cost targets, the company aims to carve out a meaningful role in an increasingly competitive and fast-evolving space ecosystem.
