TDK Ventures, Accel back India’s EtherealX in push for auto startup: sources

The Ethereal Exploration Guild, the Indian space tech organization known as EtherealX – the creation of a first-generation re-launch vehicle – is close to raising about $21 million in a new round of funding led by TDK Ventures, with Accel among the participants, TechCrunch has learned.

Originally planned as a Series A of $15 million, the round has attracted investor interest and is now expected to reach around $20.5 million, three people familiar with the matter told TechCrunch. The money comes one year after the start he earned 5 million dollars in August 2024.

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

The funding talks follow EtherealX securing $130 million worth of contracts from six clients, sources told TechCrunch, confirming the importance of early commercialization of its startup projects.

Founded in 2022 by Manu J. Nair along with the former scientist of the Indian Space Research Organization (ISRO) Shubhayu Sardar, who works as the director of operations, and flight engineer, Prashant Sharma, chief technology officer, EtherealX wants to take on SpaceX with a medium-sized launch vehicle called Razor Crest Mk-1. The rocket, which is designed to be reusable, is expected to place up to eight tons in low Earth orbit and will also be able to deliver payloads to geostationary missions and lunar injectors.

The Bengaluru-based startup says its launch plan will fund customer purchases while helping to tackle the global recession, with the first launch expected in early 2027.

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

“For the price we will enter the market, we will take 30% to 40% of it,” Nair said at the time.

India has become one of the few countries in the world that has the ability to manage and control the location, providing access to multiple destinations from a single site. Its development of space technology is also similar attracting international investors looking for markets that can fit in with the development of land in the United States, Europe, and other major regions.

EtherealX has acquired a 16-acre site in southern India’s Tamil Nadu, which it plans to start operating early next year. The startup has been rebuilding key components, including the liquid oxygen (LOX) turbopump for its advanced engine, called the Pegasus 2.0, according to a recent LinkedIn update. post by Nair.

India wants to increase its interest in international trade, aiming for a market share of 8% to 10%. over the next ten years from under 2% today, with most of this growth expected to be driven by individual startups. The country is aiming for an investment of between $40 billion and $45 billion over the next eight to 10 years, India’s space minister Jitendra Singh said recently.

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