India's Space Race: TDK & Accel Fuel Reusable Rocket Startup EtherealX
India’s burgeoning space technology sector is witnessing a significant boost with Ethereal Exploration Guild, operating as EtherealX, poised to secure approximately $21 million in a new funding round. This investment, co-led by TDK Ventures with participation from Accel and Vietnam-based BIG Capital, underscores the growing confidence in India’s potential to disrupt the global launch services market. EtherealX is developing a fully reusable medium-lift launch vehicle, the Razor Crest Mk-1, aiming to provide cost-effective and reliable access to space. This funding round, exceeding initial expectations of $15 million, comes on the heels of a successful $5 million seed round in August 2024 and highlights the increasing demand for innovative space solutions.
The Rise of EtherealX and the Razor Crest Mk-1
Founded in 2022 by Manu J. Nair, Shubhayu Sardar (formerly of ISRO), and Prashant Sharma, EtherealX is challenging established players like SpaceX with its ambitious reusable rocket program. The Razor Crest Mk-1 is designed to deliver up to eight tonnes to low Earth orbit (LEO) and is also capable of supporting missions to geostationary transfer orbit (GTO) and trans-lunar injection orbits. The company’s core strategy revolves around full reusability, a key factor in reducing launch costs and increasing launch frequency.
Key Features of the Razor Crest Mk-1
- Payload Capacity: Up to 8 tonnes to LEO
- Orbit Capabilities: LEO, GTO, and Trans-Lunar Injection
- Reusability: Fully reusable launch vehicle
- Target Launch Date: Early 2027
Securing Commercial Contracts and Market Potential
EtherealX has already demonstrated strong commercial viability, securing $130 million in contracts from six customers. This early traction validates the market demand for their launch services and provides a solid foundation for future growth. According to Nair, EtherealX aims to offer launch prices ranging from $350 to $2,000 per kilogram, potentially undercutting SpaceX’s Falcon 9, which typically charges between $1,600 and $2,000 per kilogram. This competitive pricing strategy positions EtherealX to capture a significant share of the market.
Nair previously stated that, at their projected price point, EtherealX is confident in capturing 30% to 40% of the addressable market. This ambitious goal is supported by India’s unique advantages in the space launch sector.
India's Strategic Advantage in the Global Space Race
India is rapidly emerging as a key player in the global space industry, offering a compelling combination of geographic and regulatory benefits. The country’s location provides access to multiple orbital inclinations from a single launch site, reducing logistical complexities and costs. Furthermore, the Indian government is actively promoting the growth of the private space sector through supportive policies and investments.
Government Initiatives and the Growing Space Economy
The Indian Space Minister, Jitendra Singh, recently announced the country’s ambition to increase its market share in the global commercial space industry from less than 2% to 8% to 10% within the next decade. This growth is projected to drive the development of a $40 billion to $45 billion space economy within the next eight to ten years. These ambitious targets are fueling investment and innovation within the Indian spacetech ecosystem.
The government’s commitment to fostering a thriving space economy is attracting both domestic and international investors. India is increasingly seen as a complementary market to established space development hubs in the United States and Europe.
EtherealX's Infrastructure and Technological Advancements
EtherealX is actively building the infrastructure necessary to support its launch operations. The company has secured 16 acres of land in Tamil Nadu, with plans to make the facility operational in early 2025. This facility will serve as the primary launch and manufacturing hub for the Razor Crest Mk-1.
Furthermore, EtherealX is focused on developing key in-house technologies. Recent LinkedIn posts by Nair highlight the progress made in developing a liquid oxygen (LOX) turbopump assembly for the Pegasus 2.0 upper-stage engine. This demonstrates the company’s commitment to vertical integration and technological self-reliance.
Key Technological Developments
- Pegasus 2.0 Engine: Development of a high-performance upper-stage engine.
- LOX Turbopump Assembly: In-house development of a critical engine component.
- Reusable Rocket Technology: Focus on achieving full reusability for cost reduction.
The Investment Landscape and Future Outlook
The $21 million funding round, co-led by TDK Ventures and BIG Capital with participation from Accel, represents a significant vote of confidence in EtherealX’s vision and capabilities. TDK Ventures, known for its investments in cutting-edge technology companies, brings valuable expertise and resources to the table. Accel’s involvement further validates the company’s potential. BIG Capital’s participation highlights the growing interest in the Indian space sector from Southeast Asian investors.
The investment will be crucial in accelerating the development and testing of the Razor Crest Mk-1, as well as expanding EtherealX’s engineering and manufacturing capabilities. With a target launch date of early 2027, the company is on track to become a major player in the global launch services market.
Competition and Challenges in the Space Launch Market
While EtherealX presents a compelling proposition, it faces significant competition from established players like SpaceX, Blue Origin, and Rocket Lab. SpaceX, in particular, has a dominant position in the market with its Falcon 9 and Starship rockets. EtherealX will need to overcome these challenges by demonstrating its ability to deliver reliable, cost-effective launch services.
Other challenges include navigating the complex regulatory landscape, securing necessary licenses and approvals, and managing the inherent risks associated with spaceflight. However, EtherealX’s strong team, innovative technology, and supportive government environment position it for success.
Conclusion: India's Space Ambitions Take Flight
EtherealX’s latest funding round is a testament to the growing momentum in India’s space technology sector. With its ambitious reusable rocket program, strategic location, and supportive government policies, India is poised to become a major force in the global space race. The success of EtherealX will not only benefit the company itself but also contribute to the broader development of India’s space economy and inspire a new generation of space entrepreneurs. The future of space exploration is becoming increasingly diverse and competitive, and India, with companies like EtherealX leading the charge, is ready to play a pivotal role. As reported by GearTech, this is a story to watch closely.