EtherealX, an Indian space startup, secured $5 million in seed funding to develop fully reusable medium-lift launch vehicles, aiming to make satellite launches more cost-effective and time-efficient
In recent years, there has been an increase in the number of space launches.
Nevertheless, launches continue to necessitate substantial transportation expenses and extended waiting periods despite the sheer number of participants. For instance, SpaceX launches are scheduled until 2026, even though the operating model is.
EtherealX’s objective is to resolve this issue by developing a new medium-lift vehicle that is completely reusable. This vehicle will provide absolute reusability, reducing transportation costs and launch times.
In contrast to SpaceX’s Falcon 9, which offers partial reusability by returning its booster to Earth following successful launches, EtherealX is developing its vehicles to return both the upper stage and booster.
The Bengaluru-based venture, Razor Crest Mk-1, was established in 2022 by Manu J. Nair (CEO), Shubhayu Sardar (COO), and Prashant Sharma (CTO). Its medium-lift vehicle is designed to compete with SpaceX.
The design is intended to launch 8 tons into the lower Earth orbit in an utterly reusable configuration. The vehicle can send over 24.8 tons into the lower Earth orbit in an expendable configuration and 22.8 tons in a partially reusable configuration.
The claim is that it can also deliver cargoes in trans-lunar injection and geostationary transfer orbits.
“When bringing back the upper stages, the reentry heat is so much that the refurbishment cost is almost always more than the fresh vehicle itself. So, we built from scratch a completely new rocket engine cycle, which, coupled with the deployment system, allows us to operate our engines efficiently in both vacuum and atmosphere,” said Nair in an interview.
The startup asserts that it can operate for $350–$2,000 per kilogram, a mere fraction of the current launch price of Falcon 9 and 1/35th of the global average launch price.
“We will be able to capture 30-40% of the market at the price point at which we enter,” Nair stated in an interview with TechCrunch.
The two-year-old startup has acquired 16 acres of land in Tamil Nadu, where it is constructing what it claims is the largest privately developed rocket engine facility in India.
What is the method for achieving complete reusability?
Nair explained to TechCrunch that EtherealX’s proprietary rocket engine cycle functions with a deployment system to redirect the reentry heat throughout the reentry phase, in contrast to conventional technologies for mitigating reentry heat, such as heat tiles and other thermal protection systems.
This enables the system to operate efficiently in both vacuum and atmosphere, enabling the startup to accomplish a pin-point landing instead of the traditional ballistic reentry, necessitating a much more comprehensive range of target landing zones.
“SpaceX’s Starship may be the most comparable model to our methodology.” “They are utilizing heat shields or tiles to attempt to reestablish the upper stage,” the executive stated. “We are not combating the heat of reentry.”
To maintain the confidentiality of its testing, the startup declined to disclose an excessive amount of information.
EtherealX has partnered with a few companies to delegate its production, as it does not produce the rocket engine in-house to avoid manufacturing-related capital expenditures. Nevertheless, there are intentions to make the rocket in the future.
“We must observe the most efficient method of manufacturing these components during the rocket’s development to establish a suitable manufacturing facility that will be tested in-house,” stated Nair.
EtherealX intends to evaluate its development by introducing a technology demonstrator vehicle (TDV) in 2026.
The company informed TechCrunch that the startup intends to conduct a complete orbital launch to approximately 400 kilometers with its initial vehicle. The vehicle will utilize the same engine type as the full-scale vehicle but with fewer engines: four engines in the upper stage and one in the booster stage.
The TDV will have a 1.2-ton capacity and stand at a height of 35 meters and a width of 2.5 meters.
The co-founder informed TechCrunch that the TDV launch is the initial step in verifying the telemetry and flight software for the commercial launch at a later date.
In the interim, the startup has already identified 35 potential customers for its 2026 launch, although it intends to commence operations with 10–15 customers at the outset.
India’s space ecosystem has experienced substantial expansion. According to data from the Indian government, South Asia is home to 229 space-tech startups.
The ecosystem already includes companies developing small satellite launch vehicles and solutions for hyperspectral imagery and space situational awareness.
By 2030, the Indian government anticipates the nation will increase its proportion of the global space ecosystem by fourfold.
The space policy and updated regulations that New Delhi implemented in recent months were designed to attract foreign investors and companies.
The nation also garnered global attention for its successful moon landing and partnership with NASA for its participation in the Artemis Accords.
According to Tracxn, space-tech investments in India reached $126 million in 2023, a 7% increase from the $118 million raised in 2022 and a 235% increase from the $37.6 million in 2021.
Thus far, the funding landscape has been dominated by early-stage investments, as the ecosystem has not yet reached a mature state for commercial activities.
BIG Capital, BlueHill Capital, Campus Fund, SGgrow, and Golden Sparrow Ventures were also involved in EtherealX’s initial funding round, which Indian deep tech fund YourNest led.
In the next six months, the startup intends to launch engine test firing and establish the proposal for its TDV launch in a few years using its new funds. It also wants to complete the construction of its engine test facility and produce the 40-kilonewton and 925-kilonewton engines.
