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Wed, 16 Sept 2026
10:14:25 am
Wed, 16 Sept 2026
10:14:25 am
Synopsis
Ethereal Machines raises $28.5 million in a Series B funding round led by Avataar Ventures. Learn how the Bengaluru-based startup plans to expand manufacturing, develop indigenous CNC technology, and scale globally.
Deep-tech manufacturing startup Ethereal Machines has raised $28.5 million (around ₹245 crore) in a Series B funding round led by Avataar Ventures, with participation from existing investor Peak XV Partners and other backers. The fresh capital will be used to expand manufacturing infrastructure, develop India's first indigenous multi-axis CNC controller, strengthen AI-powered software capabilities, and accelerate global expansion across the United States and Europe.
Bengaluru-based deep-tech startup Ethereal Machines has raised $28.5 million in a Series B funding round, marking a significant milestone in its journey to build world-class precision manufacturing capabilities from India.
The latest funding comes nearly two years after the company raised $13 million in its Series A round and reflects growing investor confidence in India's advanced manufacturing and engineering ecosystem.
The company aims to leverage the fresh capital to strengthen its position in precision engineering, aerospace manufacturing, semiconductor production, defence systems, and high-performance industrial automation.
Ethereal Machines plans to deploy the newly raised funds across several strategic growth initiatives:
The investment aligns with India's broader ambition of becoming a global manufacturing hub as international supply chains continue diversifying beyond China.
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines specializes in designing and manufacturing proprietary multi-axis CNC machines while also offering precision component manufacturing through its Machining-as-a-Service (MaaS) platform.
The company serves a diverse range of industries including:
| Industry Segment | Applications |
|---|---|
| Aerospace | Precision components |
| Defence | Critical engineering systems |
| Semiconductors | High-accuracy manufacturing |
| Healthcare | Medical-grade components |
| Consumer Electronics | Precision engineering solutions |
| Industrial Manufacturing | Advanced machining services |
Its manufacturing solutions are increasingly being adopted by companies requiring ultra-high precision and reliability.
Ethereal Machines has reported strong operational growth since its previous funding round.
| Metric | Performance |
|---|---|
| MaaS Revenue Growth | 3x YoY |
| Manufacturing Capacity Expansion | 10x |
| Existing Facility | Fully Automated Smart Factory |
| Upcoming Manufacturing Campus | 300,000 sq. ft. |
| Expected Employment Generation | 2,000+ Jobs |
The company currently operates an automated smart manufacturing facility in Peenya, Bengaluru, and has signed an MoU with the Karnataka government to establish a significantly larger advanced manufacturing facility on the outskirts of Bengaluru.
Management expects the new facility to become one of the largest automated advanced manufacturing centers outside China.
A key differentiator for Ethereal Machines is its proprietary factory operating software, Vesper, which uses artificial intelligence to optimize manufacturing operations.
The platform helps manufacturers:
As global manufacturing increasingly adopts Industry 4.0 technologies, software-driven automation is becoming a major competitive advantage.
The company has also developed advanced CNC machine platforms including:
According to the company, these systems deliver sub-10-micron precision, enabling highly accurate manufacturing while maintaining cost competitiveness compared to global alternatives.
This capability is particularly important in sectors such as aerospace, defence, semiconductors, and medical technology where manufacturing tolerances are extremely stringent.
While Ethereal Machines remains in a growth and investment phase, the company continues to expand its revenue base.
| Particulars | FY25 |
|---|---|
| Operating Revenue | ₹11.45 Crore |
| Net Loss | ₹27.27 Crore |
The losses primarily reflect continued investments in technology development, manufacturing infrastructure, automation systems, and business expansion initiatives.
The latest funding round comes at a time when global manufacturers are actively seeking alternatives to China-centric supply chains.
Several factors are creating opportunities for Indian advanced manufacturing companies:
Ethereal Machines is positioning itself to capitalize on these trends by building indigenous manufacturing technologies and creating globally competitive production capabilities.
Ethereal Machines is a Bengaluru-based deep-tech manufacturing company focused on advanced precision engineering and industrial automation. Founded in 2014, the company develops proprietary CNC platforms, AI-powered factory software, and machining solutions for industries such as aerospace, defence, healthcare, semiconductors, and consumer electronics.
Through its combination of hardware innovation, software intelligence, and precision manufacturing expertise, Ethereal Machines aims to establish India as a global leader in advanced manufacturing technologies.
The $28.5 million Series B funding marks a major milestone for Ethereal Machines and highlights growing investor confidence in India's deep-tech manufacturing ecosystem. With plans to expand manufacturing capacity, develop indigenous CNC technologies, strengthen AI-driven factory operations, and enter global markets, the company is positioning itself at the forefront of India's next-generation industrial transformation.
As global supply chains continue shifting and demand for high-precision engineering solutions rises, Ethereal Machines could emerge as one of India's most significant advanced manufacturing success stories over the coming decade.
The company has raised $28.5 million (approximately ₹245 crore) in its Series B funding round.
The funding round was led by Avataar Ventures, with participation from Peak XV Partners and other investors.
The company designs proprietary CNC machines and provides precision manufacturing services through its Machining-as-a-Service (MaaS) platform.
The capital will be used for manufacturing expansion, CNC controller development, software enhancement, semiconductor initiatives, and international expansion.
Ethereal Machines is headquartered in Bengaluru, Karnataka.
The company serves aerospace, defence, healthcare, semiconductor, consumer electronics, and industrial manufacturing sectors.
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