EtherealX Bags $20.5M To Advance Reusable Rocket Development

Bengaluru-based spacetech startup EtherealX has raised $20.5 Mn (about INR 185 Cr) in a Series A funding round at a valuation of $80.5 Mn. The round was led by TDK Ventures and BIG Capital, with participation from Accel, Prosus, YourNest Venture Capital, BlueHill Capital, Campus Fund and Riceberg Ventures.

The startup will deploy the capital towards designing and testing a fully reusable launch vehicle, with plans to carry out engine hot-fire tests by mid-2026 and a technology demonstration flight in late 2027. The funding will also support development of recovery systems for both the booster and upper stage, ahead of targeting commercial launch missions from 2028.

Tech Crunch was first to report on the development. 

EtherealX is developing two engines in-house — the Stallion booster engine and the Pegasus upper-stage engine. Its main vehicle, the Razor Crest Mk-1, will use nine Stallion engines on the booster and 15 Pegasus engines on the upper stage. The rocket is designed to carry up to 24.8 tonnes in expendable mode and about 8 tonnes fully reusable.

Pertinent to note that a booster engine provides the initial thrust needed for liftoff of a rocket, meanwhile the upper stage engine ignites in space to push the rocket forward further in space. 

“Our first demonstration flight is planned for 2027. By the end of 2028, we aim to start commercial launches, doing five to six missions a year and ramping up gradually,” founder Manu Nair told Inc42.

Nair added that the startup plans to introduce high-density energy solutions, like small modular nuclear reactors, in the near future. 

Important to mention that the startup has also secured 150 acres in Andhra Pradesh for manufacturing and testing its rocket engines as well as signing launch agreements worth $130 Mn with customers including Japan’s SpaceBD and Taiwan’s TASA.

The fundraise comes as India’s private spacetech ecosystem continues to gather momentum. In the past year, startups like Skyroot Aerospace have crossed key technical milestones, including the successful test-firing of the Kalam-1200 solid rocket booster, a critical step toward its Vikram-1 orbital launch vehicle.

These kinds of developments have led to an increased investor interest in Indian spacetech capabilities. As per Inc42’s Annual Indian Startup Trends Report, 2025, the previous year was sort of a breakthrough year for the sector. Spacetech startups raised a record $157 Mn last year, up 94% from $81 Mn raised in 2024. With capital flows picking up, the Indian spacetech market is now projected to cross $77 Bn by 2030.