Deeptech Startup Ethereal Machines has raised 28.5 million dollars (Rs 271.78 crore) in a Series B round led by Avataar Ventures, with participation from Peak XV Partners and other investors. The Bengaluru-based precision manufacturing startup said the fresh capital will help it expand capacity, strengthen domestic industrial capabilities, and scale its work across advanced engineering use cases.
Funding signals a bigger manufacturing push
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines designs proprietary multi-axis CNC machines and runs a Machining as a Service business. The company supplies high-precision components to aerospace, defense, healthcare, semiconductor, and consumer electronics clients, and says its investor base also includes Blume Ventures and Intel CEO Lip Bu Tan.
Kaushik Mudda, Co-founder and CEO, said the new funding will support five main priorities, including a 300,000-square-foot manufacturing facility near Bengaluru and the development of India’s first proprietary multi-axis CNC controller. It also plans to expand its AI-powered factory software platform Vesper, grow semiconductor manufacturing, and build dedicated teams in the US and Europe.
Where Ethereal Machines is placing its next bets
Ethereal Machines said its indigenous CNC controller has been in development for more than four years and is intended to become a key sovereign technology capability for India. The company currently operates a fully automated smart manufacturing facility in Peenya, Bengaluru, and plans to increase the number of machines from more than 60 to over 1,000.
The company said demand is increasing across semiconductor manufacturing, consumer electronics, and energy infrastructure sectors. According to Moneycontrol, Ethereal Machines is already fulfilling orders for global semiconductor and electronics companies, with exports contributing nearly 70% of its revenue from markets including the US, Europe, the UK, and Japan.
