Indian space tech startup EtherealX is experiencing a surge in valuation as it gears up for crucial engine tests, signaling significant progress in its mission to develop reusable launch vehicles. The company's valuation has reportedly jumped fivefold, reflecting growing investor confidence in its potential to disrupt the space launch market.
Founded in 2022 by Manu J. Nair, Shubhayu Sardar, and Prashant Sharma, EtherealX is focused on creating fully reusable medium-lift launch vehicles and propulsion systems. The company's flagship project is the Razor Crest Mk-1, a launch vehicle designed to deliver payloads to Low Earth Orbit (LEO), Geostationary Transfer Orbit (GTO), and trans-lunar injection orbits. EtherealX aims to significantly reduce space transportation costs through the reusability of its rockets, potentially offering launch prices ranging from $350 to $2,000 per kilogram. This is comparable to, or even lower than, SpaceX's Falcon 9, which typically charges between $1,600 and $2,000 per kilogram.
EtherealX is currently building a 150-acre rocket campus in India as it prepares for engine tests. The company's engines utilize RP1/LOX propellant and a closed gas generator feed cycle. A key component is the "Stallion" engine, designed to produce 925 kilonewtons of thrust. EtherealX plans to use recent funding to complete its test facility, finalize tests, and qualify the 40kN engine for the upper stage, as well as manufacture the 925kN semi-cryogenic engine.
The company has secured $130 million worth of contracts from six customers, highlighting the commercial demand for its services. EtherealX is targeting its first launch in early 2027 and has already identified over 35 potential customers for its initial launches.
EtherealX has raised a total of $26.3 million through four funding rounds. The latest Series A round, which closed on December 21, 2025, brought in $21 million. The round was co-led by TDK Ventures and BIG Capital, with participation from Accel. Prior to that, EtherealX raised $5 million in a seed round led by YourNest, with participation from BIG Global Investments, BlueHill Capital, Campus Fund, and Golden Sparrow Ventures.
EtherealX's approach involves building proprietary technology from the ground up to recover both the booster and upper stages of its rockets, going a step further than existing partially reusable systems. This focus on full reusability is intended to reduce launch costs and increase mission flexibility. The company's founders envision EtherealX playing a key role in the Indian space tech market, which is projected to exceed $44 billion by 2030.
