Ethereal XAn Indian space startup, has raised $5 million in a seed funding round as it plans to develop fully reusable medium-lift launch vehicles, making satellite launches cost-effective and time-efficient.
Space launches have multiplied in recent years. However, despite the number of participants, launches still involve substantial transportation costs and considerable waiting periods. For example, SpaceX launches are Booked until 2026even in a ride-sharing model.
EtherealX aims to solve this problem with a new, fully reusable medium-lift vehicle, offering full reusability to help reduce transportation costs and shorten launch timelines. Unlike SpaceX’s Falcon 9, which offers partial reusability by bringing its rocket back to Earth after successful launches, EtherealX is designing its vehicles to bring back both the upper stage and the rocket.
Founded in 2022 by Manu J. Nair (CEO) along with former Indian Space Research Organisation (ISRO) scientist Shubhayu Sardar (COO) and aerospace engineer Prashant Sharma (CTO), the Bengaluru-based startup aims to compete with SpaceX with its medium-lift vehicle called the Razor Crest Mk-1. In a fully reusable configuration, the design is intended to place 8 tonnes into lower Earth orbit. The vehicle would also be able to place over 24.8 tonnes into lower Earth orbit in a disposable configuration and 22.8 tonnes in a partially reusable configuration. They claim that it can also deliver payloads into geostationary transfer and translunar injection orbits.
“When bringing back the upper stages, the heat of reentry is so intense that the cost of refurbishing is almost always higher than the cost of the new vehicle itself. So we built from scratch a completely new rocket engine cycle that, together with the deployment system, allows us to operate our engines efficiently in both vacuum and atmosphere,” Nair said in an interview.
The startup claims it can operate at between $350 and $2,000 per kilogram, a fraction of what launch vehicles including the Falcon 9 currently offer and 1/35th of the global average launch price.
“At the price point we're entering the market at, we'll comfortably capture 30 to 40 percent,” Nair told TechCrunch.
The two-year-old startup has acquired 16 acres of land in Tamil Nadu, where it is developing what it says is India's largest privately developed rocket engine facility.
What is the approach to full reuse?
Unlike conventional methodologies for defending against reentry heat, such as thermal pads and other thermal protection systems, Nair explained to TechCrunch that EtherealX’s proprietary rocket engine cycle works in conjunction with a deployment system to redirect reentry heat throughout the reentry phase. This helps the system operate efficiently in both vacuum and atmosphere and allows the startup to achieve a precision landing as opposed to traditional ballistic reentry, which requires a much larger range of target landing zones.
“The closest model to our approach might be SpaceX’s Starship. They are trying to bring the upper stage back, but they are doing it with the use of heat shields or plates,” the executive said. “We are not fighting the heat of reentry.”
The startup declined to provide too many details about the registration so it could conduct tests in secret.
Currently, EtherealX is not producing the rocket engine in-house to avoid capital expenditures related to manufacturing and has partnered with a few companies to outsource its production. However, it does have plans to manufacture the rocket over time.
“During the development of the rocket, we need to look at the most effective way to manufacture these components so that we can set up a suitable manufacturing facility, which will be tested in-house,” Nair said.
EtherealX aims to test its development via a technology demonstrator vehicle (TDV), which it plans to launch in 2026. The company told TechCrunch that the startup plans a full orbital launch to about 400 kilometers with its initial vehicle, using the same type of engine as the full-scale vehicle but at a smaller engine count: four engines on the upper stage and one on the booster stage.
The TDV will be 35 metres high and 2.5 metres wide with a capacity of 1.2 tonnes.
The co-founder told TechCrunch that the TDV will first be launched to verify telemetry and flight software for commercial launch later.
Meanwhile, the startup has already identified 35 potential customers for its 2026 launch, though it plans to move forward with 10 to 15 customers initially.
India’s space ecosystem has grown significantly. The South Asian nation is home to 229 space technology startups, according to Indian government data, and the ecosystem already has players building small satellite launch vehicles and solutions to deliver space situational awareness and hyperspectral imaging.
The Indian government plans to increase its participation in the global space ecosystem quadruple by 2030In recent months, New Delhi has presented its space policy and Updated rules to attract foreign investors and businesses. The country also gained global attention for events including its Successful moon landing and partnership with NASA to join the Artemis Accords.
In 2023, space technology investments in India reached $126 million, up 7% from $118 million raised in 2022 and a 235% increase from $37.6 million raised in 2021. by TracxnSo far, the funding landscape has been driven by early-stage investments as the ecosystem has yet to mature for commercial activities.
EtherealX’s seed funding round, led by Indian deep tech fund YourNest, also included BIG Capital, BlueHill Capital, Campus Fund, SGgrow and Golden Sparrow Ventures.
The startup plans to use its new funding to begin engine firing tests within the next six months and prepare the ground for the launch of its TDV in a couple of years. It also aims to finish building its engine test center and manufacture the 40 kilonewton and 925 kilonewton engines.
