Deep-Tech Manufacturing Startup Secures Fresh Growth Capital
Precision manufacturing startup Ethereal Machines has raised $28.5 million in a Series B funding round led by Avataar Ventures, with participation from existing investor Peak XV Partners and other backers.
The funding comes nearly two years after the Bengaluru based company raised $13 million in its Series A round and marks a significant milestone in its growth journey. The latest round reportedly values the company at nearly four times its previous valuation, reflecting growing investor confidence in India’s advanced manufacturing and deep-tech ecosystem.
The capital infusion is expected to accelerate Ethereal Machines’ ambitions of building indigenous manufacturing technologies while expanding its global footprint.
Funds To Support Manufacturing Expansion And Technology Development
According to the company, the fresh proceeds will be used to expand manufacturing infrastructure, strengthen software capabilities, and support the development of India’s first indigenous multi-axis CNC controller.
The startup also plans to invest in semiconductor manufacturing initiatives and scale its international presence across key markets including the United States and Europe.
The investment comes at a time when global manufacturers are increasingly diversifying supply chains beyond China, creating opportunities for Indian firms specializing in precision engineering and advanced manufacturing solutions.
Building India’s Precision Manufacturing Ecosystem
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines develops proprietary multi-axis CNC machines and operates a Machining-as-a-Service (MaaS) platform that delivers high-precision components to customers.
The company serves industries including aerospace, defence, healthcare, semiconductors, and consumer electronics, sectors where manufacturing accuracy and reliability are critical.
Ethereal Machines said its MaaS business has recorded threefold year-on-year growth since its Series A funding round, while production capacity has increased tenfold during the same period.
The company currently operates an automated smart manufacturing facility in Peenya, Bengaluru.
New Manufacturing Facility To Create Over 2,000 Jobs
As part of its expansion plans, Ethereal Machines has signed a memorandum of understanding with the Karnataka government to establish a 300,000 square foot advanced manufacturing facility on the outskirts of Bengaluru.
The proposed plant is expected to generate more than 2,000 jobs and could become one of the largest automated advanced manufacturing facilities outside China.
The company believes the facility will significantly enhance its production capabilities while strengthening India’s position in the global precision manufacturing supply chain.
AI-Powered Factory Software Remains Key Focus
Beyond hardware manufacturing, Ethereal Machines is continuing to invest heavily in Vesper, its proprietary factory operating software platform.
The AI-powered system is designed to predict lead times, monitor factory performance in real time, and optimise production workflows across manufacturing operations.
The company sees software-led manufacturing intelligence as a critical differentiator in improving efficiency, reducing costs, and delivering higher levels of automation.
Its proprietary CNC platforms, Aura and Nimbus, reportedly deliver sub-10-micron precision, enabling highly accurate manufacturing at competitive costs.
Financial Performance And Future Outlook
Despite rapid operational growth, Ethereal Machines continues to invest heavily in technology development and capacity expansion.
According to its latest financial statements, the company reported operating revenue of ₹11.45 crore in FY25. However, it posted a loss of ₹27.27 crore during the year as it continued funding expansion initiatives and product development.
The latest funding round is expected to provide the resources required to scale operations, strengthen domestic manufacturing capabilities, and compete more aggressively in international markets.
As global demand for precision engineering solutions continues to rise, Ethereal Machines is positioning itself as a key player in India’s effort to build a globally competitive advanced manufacturing ecosystem.
