Ethereal Machines Raises USD 28.5 Million In New Funding

Ethereal Machines, a Bengaluru-based deeptech startup, on Thursday announced raising USD 28.5 million in a series B Round led by Avataar Ventures. Peak XV Partners and other investors also joined the round. 

Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines is a deep-tech precision manufacturing company. It designs, builds, and operates proprietary multi-axis CNC machines. The company says its flagship platform Nimbus delivers sub-10-micron accuracy at production scale. Through its Machining-as-a-Service model, Ethereal serves global clients across aerospace, defence, healthcare, semi-con and consumer electronics from its Smart Factory in Peenya, Bengaluru.

In June 2024, Ethereal raised USD 13 million in a Series A round co-led by Peak XV Partners and Steadview Capital. Existing investors Blume Ventures, Enam Investments, and Sandeep Singhal also participated in the round.

Since the series A funding, the company says, its machining-as-a-service (MaaS) has delivered 3x revenue year-over-year, while the production capacity via its smart factory operations has grown 10x. 

The company now runs India’s first fully automated smart manufacturing unit in Peenya, Bengaluru. It has also signed an MoU with the Government of Karnataka to establish a 300,000 sq. ft. mega-factory on the outskirts of the city. During this period, it also launched Aura (3-axis) and Nimbus (5-axis), proprietary CNC machines achieving sub-10-micron accuracy — a first for Indian manufacturing — and expanded its client base across aerospace, defence, healthcare, semiconductors, and consumer electronics.

According to Ethereal, it will use the capital for primarily following purposes: setting up the 300,000 sq ft facility and creating 2,000 plus new local jobs. It will also focus on building what it describes as India’s first proprietary multi-axis CNC controller. Other focus areas will be semiconductors, and global expansion. The company plans to set up teams in the US and Europe to serve sectors such as medical device OEMs, defence, and aerospace. 

Global Expansion: Building dedicated teams in the United States and Europe to serve global aerospace, defence, and medical device OEMs directly.

Commenting on the fundraise, Kaushik Mudda, Co-Founder & CEO, Ethereal Machines shared, “India has long had the engineering talent to lead in advanced manufacturing; what has been missing is deeply integrated industrial capability at global standards. The world is actively looking for resilient alternatives in global manufacturing, and India has a once-in-a-generation opportunity to emerge as a serious deep-tech manufacturing powerhouse. Ethereal Machines is building that foundation from precision CNC systems to intelligent factory software and large-scale automated manufacturing. This capital allows us to accelerate that journey and position India as a trusted global hub for high-precision manufacturing.”