Sources: TDK Ventures and Accel set to support India’s EtherealX in propelling its reusable launch vehicle

Ethereal Exploration Guild, an Indian space technology startup known as EtherealX — which is developing a fully reusable medium-sized launch vehicle — is close to raising about $21 million in a new funding round led by TDK Ventures, with Accel among the participants, TechCrunch has learned.

Initially planned as a $15 million Series A, the round has attracted strong investor demand and is now expected to reach about $20.5 million, three people familiar with the matter told TechCrunch. The financing comes more than a year after the start of operation Raised a $5 million seed round In August 2024.

TDK Ventures is co-leading the round with Vietnam-based venture capital firm BIG Capital, with Accel also participating, the sources said.

The funding talks come on the heels of EtherealX securing $130 million in contracts from six customers, sources told TechCrunch, underscoring early commercial demand for the launch services.

Founded in 2022 by Manu J. Nair along with former Indian Space Research Organization (ISRO) scientist Shubhayu Sardar, who serves as chief operating officer, and aerospace engineer Prashant Sharma, chief technology officer, EtherealX aims to take on SpaceX with a medium-altitude launch vehicle called the Razor Crest Mk-1. The rocket, which is designed to be fully reusable, is expected to place up to eight tons into low Earth orbit and will also be able to deliver payloads to geostationary transfer orbits and translunar injection orbits.

The Bengaluru-based startup says its launch system will provide cost efficiencies to customers while helping address the global shortage of launch capacity, with a first launch targeted for early 2027.

In an interview with TechCrunch last year, Nair said the EtherealX rocket could offer launch prices ranging from about $350 to $2,000 per kilogram. In comparison, SpaceX’s Falcon 9 rocket typically costs between $1,600 and $2,000 per kilogram.

“At the price point at which we will enter the market, we will comfortably capture 30% to 40% of it,” Nair said at the time.

India has emerged as one of the few countries in the world with a geographical and regulatory advantage for space launches, offering access to multiple orbital inclinations from a single launch site. So is its growing space technology ecosystem Attracting global investors Searching for markets that can complement space development in the United States, Europe and other key regions.

EtherealX has acquired 16 acres of land in the southern Indian state of Tamil Nadu, which it plans to start operating early next year. The startup is also developing key components, including a liquid oxygen (LOX) turbopump assembly for the upper stage engine, known as Pegasus 2.0, according to a recent LinkedIn post. mail By Nair last week.

India aims to significantly expand its presence in the global commercial space industry, Targeting a market share ranging between 8% to 10% over the next decade from less than 2% today, with most of this growth expected to be driven by private startups. Indian Space Minister Jitendra Singh recently said that the country is working to achieve a space economy worth between $40 billion and $45 billion over the next eight to 10 years.

Nair declined to comment. TDK Ventures, Accel and BIG Capital did not respond to requests for comment.