NextFin News - On December 18, 2025, sources close to the transaction revealed that TDK Ventures and Accel are advancing plans to back EtherealX Technologies, a Bengaluru-based startup focused on developing a fully reusable medium-lift launch vehicle. EtherealX, founded in 2022 by CEO Manu J. Nair, COO Shubhayu Sardar (an ex-ISRO scientist), and CTO Prashant Sharma, is building Razor Crest Mk-1, a rocket designed to carry payloads of up to eight tonnes into low Earth orbit (LEO) and beyond, including geostationary transfer orbit (GTO) and potentially trans-lunar injection. This funding round is also co-led by Vietnam’s BIG Capital and aims to enhance EtherealX’s capacity for propulsion testing, structural qualification, and integrated stage operations at its newly acquired 16-acre site in Tamil Nadu, India.
This investment arises amid a favorable Indian policy environment accelerated by IN-SPACe’s regulatory facilitation and liberalization of foreign investment in space enterprises. The government’s ambition to capture an 8–10% share of the global commercial space market by 2035, equating to a $40–$45 billion economy, supports private players like EtherealX in entering capital-intensive, technologically demanding reusable launch capabilities. The company’s aggressive pricing model targets capturing 30%–40% of addressable medium-lift launch demand by delivering rapid turnaround times and cost efficiencies through reusability.
Technologically, EtherealX is progressing on key subsystems, including the Pegasus 2.0 liquid oxygen turbopump, critical to the upper stage cryogenic engine. This subsystem progress signals maturation toward a planned inaugural flight around 2027. The company prioritizes rapid reusability through advanced thermal protection, precision landing, and high-cycle engine durability aiming to rival incumbents in launch cadence and operational cost.
The Indian space launch ecosystem is becoming increasingly competitive. EtherealX’s strategic focus on medium-lift vehicles situates it uniquely between smaller launchers like Skyroot Aerospace and Agnikul Cosmos and ISRO’s large-scale missions. The convergence of private sector innovation with legacy public-sector expertise via personnel connections and technology spillovers augments EtherealX’s prospects.
Backing from TDK Ventures, known for investments in deep tech and propulsion-adjacent fields, and Accel, which has a strong presence in frontier Indian tech startups, provides both capital and strategic value in scaling manufacturing, test infrastructure, and business development. This synergy addresses the capital intensiveness and technical risk associated with developing high-reuse rockets.
Looking forward, EtherealX’s trajectory will hinge on milestones such as successful hot-fire test completions of its propulsion system, comprehensive structural validations, and demonstration of reliable vehicle recovery through guidance and navigation tests. Synchronous regulatory clearances from IN-SPACe and operational permissions at Satish Dhawan Space Centre will be pivotal for launch cadence.
In a broader context, EtherealX’s development aligns with global trends emphasizing reusability as foundational to reducing launch costs and meeting burgeoning satellite constellation deployment demands. Euroconsult projects tens of thousands of satellite launches over the next decade, stressing medium-lift vehicles' role in dedicated, flexible, and competitive orbital access. India, with its strategic geographic latitude and growing regulatory support, is poised to capture a significant share of this market, further catalyzed by investments like this.
From a financial and strategic standpoint, EtherealX's ability to translate this funding into operational milestones could de-risk investment, attract anchor commercial customers, and disrupt incumbent providers with cost-effective, rapid-turnaround launches. This transition represents an inflection point for India’s aerospace sector, potentially establishing the country as a global hub for reusable launch technology and commercial space services under the current U.S. President Trump administration’s environment, which fosters international technology collaboration.
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