EtherealX’s Valuation Soars 5.5x as It Advances Fully Reusable Rocket Technology
Ethereal Exploration Guild, widely recognized as EtherealX, has experienced a remarkable 5.5-fold increase in its valuation, reaching $80.5 million following its latest funding round. This Bengaluru-based space technology startup is at the forefront of developing a fully reusable launch vehicle and is preparing for critical engine hot-fire tests ahead of its inaugural technology demonstration flight scheduled for 2027.
Significant Funding Milestone
EtherealX recently concluded an oversubscribed Series A funding round, securing $20.5 million. The round was co-led by TDK Ventures and BIG Capital, with participation from Accel, Prosus, YourNest, BlueHill, Campus Fund, and Riceberg Ventures. This substantial investment follows a $5 million seed round in August 2024, which had valued the company at $14.6 million. The latest funding underscores the growing confidence in EtherealX’s innovative approach to space launch technology.
India’s Expanding Space Ambitions
India is actively working to enhance its space ecosystem, aiming to expand its space economy from $8 billion to $45 billion over the next decade. EtherealX is among the emerging startups contributing to this ambitious growth. The global demand for increased launch capacity and scheduling flexibility has been largely influenced by SpaceX’s Falcon 9, which has set new standards for pricing and launch frequency. EtherealX aims to meet this demand by developing a fully reusable vehicle capable of returning both the booster and upper stage, a strategy that could significantly reduce per-launch costs and increase flight frequency without the need for a proprietary satellite constellation.
Innovative Engine Development
Central to EtherealX’s mission are two proprietary engines: the 80-kilonewton Pegasus upper-stage engine and the 1.2-meganewton Stallion booster engine. The company plans to conduct hot-fire tests for these engines between June and July. Thrust, measured in kilonewtons and meganewtons, indicates the lifting force an engine can generate, which is crucial for payload capacity and mission success.
Upcoming Milestones
EtherealX is targeting a launch window between November and December 2027 for its technology demonstration vehicle, with commercial missions expected to commence by late 2028. Co-founder and CEO Manu J. Nair emphasized the importance of these milestones in an interview, highlighting the company’s commitment to advancing space technology.
Technical Specifications and Efficiency
Rocket engineers often assess specific impulse, a key indicator of fuel efficiency that, along with thrust, determines the payload capacity for a given amount of propellant. The Pegasus engine boasts a vacuum-specific impulse of 323 seconds and utilizes a proprietary full-flow segregated cooling cycle. It also features an in-house additively manufactured turbopump. The Stallion booster engine employs a gas-generator cycle and delivers a sea-level specific impulse of 306 seconds.
Manufacturing and Testing Infrastructure
To support its development efforts, EtherealX operates a rocket engine test site in Tamil Nadu, known as Base 001, focusing on upper-stage engine qualification. Additionally, the company has secured a 150-acre manufacturing and testing campus in Andhra Pradesh’s proposed space city, expected to become operational by mid-2026. This facility will facilitate integrated engine and stage testing, further advancing EtherealX’s capabilities.
Commercial Prospects and Customer Engagement
EtherealX has already signed launch memoranda of understanding totaling approximately $130 million with clients, including Japan’s Space BD and Taiwan’s space agency, TASA. These agreements reflect early commercial interest and demand for EtherealX’s launch services ahead of its first demonstration flight.
Strategic Use of Funding
The recent funding will be allocated to complete flight qualification of the Stallion booster engine and to conduct clustered-firing tests of the Pegasus upper-stage engines. To support this accelerated development, EtherealX plans to expand its team from 67 to about 90 employees over the next two months, enhancing manufacturing capacity and increasing testing frequency in preparation for its first demonstration flight.
