European SpaceX competitor secures $160 million for reusable spacecraft to transport astronauts and cargo to orbit.

• On Monday, TEC declared that it had secured $160 million to fund the advancement of its space capsule, which is intended to transport astronauts and cargo to space stations.
• The lead investors in the round were Balderton Capital and Plural, along with French and German government-backed investment vehicles.
• The company's primary offering is Nyx, a reusable space capsule that can be launched from rockets and transport both people and cargo into space.

TEC declared on Monday that it has secured $160 million in funding to drive the advancement of its spacecraft intended for transporting astronauts and cargo to space stations.

The lead investors in the round were Balderton Capital and Plural, with support from French Tech Souveraineté and DeepTech & Climate Fonds, both government-backed investment vehicles.

Nyx, TEC's core product, is a reusable capsule that can be launched from rockets into space, carrying passengers and cargo. After dropping its payload, it can re-enter the Earth's atmosphere and be used for the next mission.

TEC CEO Hélène Huby stated in an interview with CNBC that the space industry is a large and expanding market, growing at approximately 10% per year due to increasing interest from nations in sending astronauts and reaching the moon.

"There is a growing need to transport individuals and goods to stations," she stated.

Few players dominate this market segment, including SpaceX with its Dragon capsule, as well as competitors from China and Russia.

Huby stated, "We cannot solely rely on SpaceX for a solution, so we must develop our own capacity in Europe to have our own capsule and provide an alternative solution for the world."

The European Space Agency will partly finance the development of the second version of Nyx, which TEC expects to launch next year, followed by a final version in 2028.

Starlab and Axiom Space are among the companies that have signed $800 million in contracts with Huby to use its capsule for space missions.

The space industry is growing, with countries such as China, the U.S., and India participating. Among these, the NASA-led Gateway stands out as an ambitious project - it will be the first moon-orbiting space station.

As the number of individuals increases, so does the demand for cargo. This phenomenon is observed not only on Earth but also on the moon, according to Huby.

TEC is viewed by Huby as a crucial player in the development of technology for returning cargo to Earth after it has been in space.

Huby stated that this is where we believe our vehicle will play an important role.