EtherealX Valuation Soars 5x as Indian SpaceX Rival Prepares Critical Engine Tests
India’s private space race just got a major boost. Ethereal Exploration Guild—better known as EtherealX—has seen its valuation surge more than fivefold to $80.5 million following a $20.5 million Series A funding round. The Bengaluru-based startup is now gearing up for pivotal engine hot-fire tests this summer, a crucial step toward its goal of launching a fully reusable rocket by 2027. With global satellite operators hungry for affordable, flexible launch options beyond SpaceX, EtherealX is positioning itself as India’s answer to the new space economy.
Why EtherealX Is Drawing Global Attention
In a market long dominated by government agencies and a handful of U.S. players, EtherealX stands out as one of India’s most ambitious private space ventures. Unlike many startups focusing on small satellites or niche components, EtherealX is building an end-to-end launch system designed from the ground up for full reusability—booster and upper stage. That’s a bold move, especially in a country where private space activity only gained regulatory clarity in recent years.
The company’s rapid rise reflects growing investor confidence in India’s space potential. Its latest round was oversubscribed and led by TDK Ventures and BIG Capital, with strong participation from Accel, Prosus, YourNest, and others. This follows a $5 million seed round in August 2024 that valued the company at just $14.6 million—highlighting how quickly the market has embraced its vision.
Fully Reusable Rockets: The Holy Grail of Cost-Efficient Launch
SpaceX revolutionized the industry by recovering and reusing Falcon 9 boosters, slashing launch costs and increasing flight frequency. But even SpaceX doesn’t recover its upper stage—a key limitation EtherealX aims to solve. By designing both stages to return safely to Earth, the startup could dramatically reduce per-launch expenses and offer more responsive scheduling, a critical advantage for commercial satellite operators tired of waiting months for a ride to orbit.
This approach isn’t just technically ambitious—it’s economically strategic. As the global small- and medium-satellite market expands, demand for dedicated, on-demand launches is rising. EtherealX’s model targets that gap, offering flexibility without requiring customers to share rides or compromise on orbit insertion.
Inside EtherealX’s Dual-Engine Development Push
At the heart of EtherealX’s vehicle are two proprietary engines under final development. The “Stallion,” a 1.2-meganewton thrust booster engine, will power the first stage, while the 80-kilonewton “Pegasus” engine is designed for the upper stage. Both are being tested in-house, with hot-fire trials scheduled for June–July 2026.
Hot-fire testing—where engines are ignited under controlled conditions—is a make-or-break milestone. Success here validates combustion stability, cooling systems, and thrust control. For a startup operating outside traditional aerospace hubs, pulling off reliable engine tests on the first attempt would be a significant engineering feat and a strong signal to future customers and partners.
India’s Space Ambitions Go Beyond ISRO
For decades, India’s space narrative was synonymous with ISRO—the Indian Space Research Organisation—renowned for cost-effective missions like Chandrayaan and Mangalyaan. But with the government opening the sector to private players in 2020, a new ecosystem is emerging. Startups like EtherealX, Agnikul Cosmos, and Skyroot Aerospace are now driving innovation, backed by policy reforms and venture capital.
The national goal is clear: grow India’s space economy from $8 billion to $45 billion by 2035. Achieving that requires more than government missions—it demands scalable, commercially viable launch providers. EtherealX’s focus on reusability aligns perfectly with that vision, potentially giving India a competitive edge in the global launch market.
What’s Next for EtherealX?
If engine tests go smoothly in mid-2026, EtherealX plans to integrate its systems for a suborbital technology demonstration flight by late 2026 or early 2027. This path mirrors early SpaceX milestones, where iterative testing paved the way for orbital success. While timelines in aerospace are notoriously fluid, the company’s disciplined roadmap and strong technical team—many with ISRO or international aerospace experience—suggest it’s more than just hype.
Long-term, EtherealX envisions weekly launches from Indian soil, serving domestic and international clients alike. That ambition may seem far-fetched today, but so did SpaceX’s goals two decades ago. In a world where access to space is becoming democratized, having a reliable, low-cost launch option from Asia could reshape supply chains and mission planning for satellite operators worldwide.
A New Era for Global Launch Competition
EtherealX’s rise isn’t just about one company—it signals a shift in the global space landscape. As geopolitical tensions affect supply chains and export controls tighten, diversifying launch options has become a strategic priority. Countries and companies are increasingly seeking alternatives to U.S.- and Russia-dominated systems.
India, with its stable democratic governance, growing tech talent pool, and favorable equatorial launch geography, is well-positioned to become a launch hub. EtherealX, if successful, could anchor that transformation, proving that reusable rockets aren’t just a Silicon Valley phenomenon.
For now, all eyes are on Bengaluru this summer. When the Stallion and Pegasus engines roar to life on the test stand, they won’t just be burning fuel—they’ll be igniting India’s boldest private space dream yet. And if EtherealX delivers, the ripple effects could be felt from Mumbai to Munich, Seattle to Singapore.
