Indian SpaceX rival EtherealX is rapidly emerging as one of the most closely watched startups in the country’s expanding space economy. The Bengaluru-based company, formally known as Ethereal Exploration Guild, has recorded a dramatic jump in valuation as it moves closer to critical engine testing milestones. Following its latest funding round, the startup’s valuation has surged more than fivefold to $80.5 million, signaling growing investor confidence in its fully reusable launch vehicle program.
The sharp valuation increase comes after EtherealX closed an oversubscribed $20.5 million Series A round led by TDK Ventures and BIG Capital. Existing backers including Accel and Prosus also joined the round alongside several early-stage funds. This fresh capital builds on a $5 million seed raise completed in August 2024, when the startup was valued at just $14.6 million, underscoring how quickly its technical progress has reshaped market perception.
EtherealX’s rise reflects a broader shift underway in India’s space sector. The country is working to scale its space economy from roughly $8 billion today to an estimated $45 billion over the next decade. While early growth focused on small launch vehicles and component manufacturing, attention is now turning toward more ambitious platforms that can compete globally on cost, cadence, and reusability. EtherealX sits squarely in that next wave, aiming to challenge established benchmarks set by SpaceX and its industry-defining Falcon 9 rocket.
Globally, satellite operators are seeking additional launch capacity as deployment schedules tighten and constellation timelines become more complex. Although Falcon 9 remains the reference point for pricing and launch frequency, demand continues to outpace supply. EtherealX is positioning itself as a flexible alternative by designing a vehicle that can return both the booster and the upper stage, a capability that goes beyond partial reuse models currently dominant in the market.
At the core of EtherealX’s strategy is deep vertical integration. The startup is developing its propulsion systems entirely in-house, a move intended to control costs and accelerate iteration cycles. Its upper-stage engine, known as Pegasus, generates 80 kilonewtons of thrust and is designed for high-efficiency orbital insertion. The larger Stallion engine, rated at 1.2 meganewtons, powers the booster stage and delivers the raw lift required for medium-lift missions. Together, these engines form the backbone of the company’s Razor Crest Mk-1 launch vehicle.
Engine testing now represents the most important near-term milestone. EtherealX is preparing for hot-fire tests of both engines, targeted for mid-year. These tests are designed to validate combustion stability, thermal management, and overall performance under flight-like conditions. In rocketry, such tests often mark the transition from design to true hardware maturity, and investors typically view successful hot-fires as a major de-risking event.
Beyond thrust, efficiency metrics play a decisive role in launch economics. The Pegasus engine achieves a vacuum-specific impulse of 323 seconds, placing it competitively among modern upper-stage engines. This efficiency is enabled by what the company describes as a proprietary full-flow segregated cooling cycle, paired with an additively manufactured turbopump developed internally. The Stallion engine, optimized for sea-level operation, delivers a specific impulse of 306 seconds using a gas-generator cycle tuned for reliability and rapid turnaround.
EtherealX plans to cluster multiple engines to achieve the performance required for medium-lift missions. The Razor Crest Mk-1 configuration calls for nine Stallion engines on the booster and fifteen Pegasus engines on the upper stage. This approach mirrors strategies used by leading launch providers, where clustering allows incremental scaling and engine-out tolerance while simplifying manufacturing through standardized components.
Reusability remains the defining feature of the vehicle’s design. While most current rockets focus on recovering the first stage, EtherealX aims to return both stages after each mission. If successful, this architecture could significantly reduce marginal launch costs while increasing flight frequency without relying on a proprietary satellite constellation to keep the manifest full. The company estimates payload capacity of up to 24.8 tons in expendable mode, 22.8 tons with partial reuse, and roughly 8 tons when fully reusable.
Pricing targets reflect this flexible configuration strategy. EtherealX expects launch costs to range between $350 and $2,000 per kilogram over time, depending on cadence and reuse depth. These figures are designed to attract a broad mix of customers, from commercial satellite operators to government agencies seeking dedicated launch slots and predictable schedules.
Infrastructure investment is also accelerating. EtherealX operates a dedicated rocket engine test site in Tamil Nadu, known internally as Base 001, which is focused on qualifying upper-stage propulsion systems. In parallel, the company has secured a 150-acre manufacturing and testing campus in Andhra Pradesh’s proposed space city. This facility is expected to become operational by mid-2026 and will support integrated engine, stage, and vehicle-level testing as flight hardware comes together.
Commercial traction is already forming ahead of the first demonstration launch. EtherealX has signed memoranda of understanding totaling approximately $130 million with early customers, including Japan-based launch services firm Space BD and Taiwan’s national space agency, TASA. These agreements provide early demand signals and help validate the company’s market positioning even before its first orbital flight.
The roadmap ahead is clearly defined. A technology demonstration flight is scheduled for late 2027, with commercial missions expected to begin toward the end of 2028. The latest funding round will be used primarily to complete flight qualification of the Stallion booster engine and to conduct clustered firing tests of the Pegasus upper-stage engines, both of which are essential steps toward integrated vehicle testing.
EtherealX’s team is scaling alongside its ambitions. The startup currently employs 67 people and plans to grow to around 90 staff members in the coming months as manufacturing ramps up and test cadence increases. This expansion reflects a shift from early-stage design toward execution, where production discipline and test throughput become critical to meeting launch timelines.
As India’s private space sector matures, EtherealX stands out for the scope of its vision and the pace of its progress. By combining aggressive reusability goals, in-house engine development, and early commercial commitments, the company is positioning itself as a serious contender in a market long dominated by a handful of global players. If upcoming engine tests proceed as planned, EtherealX could soon move from promising startup to a defining force in the next chapter of orbital launch.
