EtherealX is a space tech startup that raised $5 million in a seed funding round led by YourNest. This  funding round saw the participation of several new and existing investors including BlueHill Capital,  BIG Global Investments JSC, Golden Sparrow Ventures, and Campus Fund. The angel investors IIFL  Wealth’s Yatin Shah & Karan Bhagat, Akhilesh Agarwal, and Kiran Shetty also participated in this  ongoing funding round.  

The company will use these fresh proceeds to develop the engines for its fully reusable medium-lift  vehicle, scale up operations, meet general corporate purposes, and increase its workforce. Earlier, this  year the startup secured its first institutional funding from Riceberg Ventures, Campus Fud, and  BlueHill Capital. The space tech startup is working on developing a reusable rocket to bring the booster  back to Earth after its launch. SpaceX is the only major rocket manufacturing company in the market  that commercially operates orbit launched using reusable rockets in the heavy-lift and medium-lift  categories. EtherealX is currently focused on developing engines for Razor Crest MK-1. The founder  and CEO of EtherealX, Manu J Nair told MoneyControl that the investment will enable the compay to  complete its test facility and complete the final tests with qualification of the 40KN engine developed  for the upper stage. He mentioned that this fund will also be used to manufacture the 925KN semi cryogenic engine. 

Based in Bengaluru, EtherealX is confident that this funding will enable them to complete their engine  development and test the launch of their reusable rocket soon. Their goal is to create the world’s first  fully reusable medium-lift launch vehicle. The firm is designing the model to make it capable of carrying  and dispatching payloads of up to 24.8 tonnes to the Lower Earth Orbit in a disposable configuration  and around 22.8 tonnes in a partially reusable configuration. This launch vehicle will be able to hold  up to 8 tonnes in a fully reusable configuration to 44 km of the Lower Earth Orbit.  

Technology and costs have been major challenges for developing class-specific launch vehicles, and  EtherealX aims to solve these problems. The startup is solving these problems with a clear tech  advantage addressing pricing and frequency problems. Nair mentioned that its investors share the  vision with the firm for civilization and high-impact technology and they are working together to  revolutionize the space tech sector. The launch vehicle firm is developing will deliver the limited  payload into trans-lunar injection orbits and geostationary transfer. This fresh capital will help the  startup carry out its launch mission and accelerate its technological growth. 

The space tech startup has secured around $5.34 million in funding across two funding rounds since  its inception. The data intelligence platform, Traxcn mentioned that the company reported a post money valuation of $2.44 million as of June 2023. The firm currently has five institutional investors  including Campus Fund, Bluehill Capital, and YourNest. The largest investor of the company is Campus  Fund. The startup faces competition from other space tech companies such as SpaceX, Kinetix, and  Blue Origin. 

The Indian space tech sector has seen significant progress in recent years. For example, earlier this  month, another Bengaluru-based space tech startup, Galaxeye, made a deal with the drone tech  startup IdeaForge. This deal involved selling Series A convertible preference shares, raising Rs 8.28  crore. Galaxeye is working on launching a multi-sensor imaging satellite that will provide geospatial  analysis for the Indian government and defense sector. The company has also gained access to INSPACE  labs and workspace to help launch its first satellite, “DrishtiMission,” this year. Galaxeye also has an  agreement with iDEX to build a multi-sensor fusion processing system capable of carrying 150 kg  payloads for Indian Air Force satellites.

The funding round of EtherlaX reflects the rapid growth and increased interest in the Indian space tech  industry. The startup is backed by five institutional and angel investors. The company has been  developing various new products for the reusable rocket technology market. The company’s goal is to  develop a fully reusable medium-lift launch vehicle to deliver payloads to various orbits, including  those around the geostationary orbits. 

Last month, the Indian National Space Promotion and Authorization Center also announced its  collaboration with IN-SPACE to work with Indian startups to build Earth Observation systems based on  Space. The program is available for all those companies that have annual revenue of over Rs 200 crore  in the past three years or they should have a valuation of Rs 850 crore. Only selected companies will  be able to get access to launch the satellites through Indian satellite launching vehicles and monitor  the spacecraft’s health. 

The government has been trying to enhance the space tech sector in India. The development came  just after the Indian government announced its plans to launch a Rs 1,000 crore venture capital fund  focused on Indian space tech startups. The Indian government has been launching several new  programs and funds to help the Indian startup ecosystem grow. The Space tech market is predicted to  increase and cross the 77 billion USD mark in the next six years. The Indian space tech ecosystem is  benefiting from a supportive environment, both regulatory and financial-wise. Government initiatives  aimed at promoting innovation and entrepreneurship in space technology are creating more suitable  ground for startups. These initiatives, along with strategic collaborations such as Galaxeye and  IdeaForge’s collaboration to create a satellite for IAF are driving the sector’s growth. 

The progress and the broader developments in the Indian space tech sector highlight a promising  future for Space tech companies. The combination of innovative technology, strategic investments,  and government policies is creating the stage for significant advancements. The launch vehicle by  EtherealX is also contributing to a larger narrative of technological progress and space exploration that  has the potential to revolutionize the space tech industry globally. By providing financial support and  creating a favorable environment for innovation the government is helping Indian startups compete  on a global scale. 

Conclusion: 

EtherealX is a space tech startup from Bengaluru that manufactures space crafts, and launch vehicles  for space solutions. The startup secured 5 million USD in its ongoing seed funding round. The round  saw the participation of several existing investors and was led by the institutional investor YourNest  with the participation of BIG Global Investments JSC, BlueHill Capital, Golden Sparrow Ventures,  Campus Fund, IIFL Wealth’s Yatin Shah & Karan Bhagat, and Akhilesh Agarwal. The development came  just after the Indian space tech sector saw increased interest from investors with the increasing CAGR  rate. The reusable rockets can be made more accessible and affordable to launch while creating new  opportunities by reducing the cost of launching payloads into space. 

This space tech startup intends to use these fresh proceeds to complete its test facility and develop  the engines for its fully reusable medium-lift vehicle. The supportive environment within India’s space  tech sector, with the support of various government initiatives and strategic collaborations, further  enhances the potential for technical advancements in the space technology segment. The company  aims to develop the first fully reusable medium-lift launch vehicle in the world. The company has been  designing the launch vehicle to make it capable of dispatching payloads of around 24.8 tonnes to the  Lower Earth Orbit in a disposable configuration and over 22.8 tonnes in a partially reusable 

configuration. The startup believes that this launch vehicle will be able to hold up to 8 tonnes in a fully  reusable configuration to 44 km of the Lower Earth Orbit.