Indian Startup EtherealX Achieves Major Valuation Jump on SpaceX-Style Rockets

In Focus:

• EtherealX raises $20.5M in Series A, valuation jumps 5.5× to $80.5M
• Startup develops reusable rockets capable of full-stage recovery like SpaceX
• Hot-fire rocket engine tests in India planned by mid-2026
• First technology demonstration flight scheduled for late 2027

An Indian startup developing SpaceX-style reusable rockets, EtherealX, has experienced a significant valuation jump after raising $20.5 million in a Series A funding round, bringing its valuation to $80.5 million, according to TechCrunch.

The funding will support the development of reusable rocket technology, including hot-fire engine tests in India and the construction of advanced manufacturing facilities. The investment positions EtherealX as a rising competitor in the international launch market, with a focus on cost-efficient orbital access.

Technology and Rocket Engine Development

Bengaluru-based EtherealX is developing two proprietary engines. The Pegasus upper-stage engine delivers 323 seconds of vacuum-specific impulse using a full-flow cooling cycle, while the Stallion booster engine delivers 306 seconds of sea-level impulse via a gas-generator cycle. Nine Stallion engines power the booster, and 15 Pegasus engines lift the upper stage.

Hot-fire tests are scheduled for mid-2026 at Base 001 in Tamil Nadu to validate thrust, efficiency, and operational reliability. Critical components such as turbopumps are produced in-house using additive manufacturing, marking some of the most advanced liquid rocket engine demonstrations in Asia outside China, Japan, and South Korea.

The Razor Crest Mk-1 launch vehicle is designed for full-stage reusability and offers three configurations: fully reusable with an 8-ton payload, partially reusable at 22.8 tons, and expendable at 24.8 tons. Launch costs are projected between $350 and $2,000 per kilogram, depending on reusability and flight cadence. This model aims to provide satellite operators with flexible, cost-effective launch options and alternatives to established US and European providers.

Infrastructure and Global Partnerships

EtherealX is building a 150-acre manufacturing and testing campus in Andhra Pradesh, expected to be operational by mid-2026. The facility will support full-stage assembly and clustered engine firing demonstrations. The startup has signed memoranda of understanding totaling $130 million with international partners, including Japan’s SpaceBD and Taiwan’s TASA, signaling strong global commercial interest.

With a current team of 67 set to expand to 90, EtherealX is scaling operations to meet upcoming test flights. The first technology demonstration flight is scheduled for late 2027, with commercial launches expected in 2028.

Implications for the Worldwide Space Sector

EtherealX’s valuation jump reflects growing investor confidence in Indian startups developing reusable rocket technology capable of competing internationally. By pursuing a SpaceX-style model, EtherealX strengthens India’s role in commercial orbital launches, supports cost-efficient satellite deployment, and promotes international partnerships.

Its progress highlights a maturing Indian aerospace ecosystem and increasing relevance for US and global space markets, offering complementary capacity to traditional launch providers and new opportunities for satellite operators.