Ethereal Machines Raises $28.5 Million in Series B Funding to Expand Advanced Manufacturing
Precision manufacturing startup Ethereal Machines has secured $28.5 million in a Series B funding round led by Avataar Ventures, with additional participation from Peak XV Partners and other investors. This fresh capital aims to boost Ethereal Machines’ manufacturing capacity and enhance India’s domestic expertise in advanced engineering and industrial production.
Strategic Deployment of Capital for Growth
The Series B funds will be allocated towards several key priorities:
- Construction of a state-of-the-art 300,000 sq. ft. manufacturing facility near Bengaluru.
- Development of India’s first proprietary multi-axis CNC controller.
- Expansion of the AI-powered factory software platform, Vesper.
- Growth in semiconductor manufacturing capabilities.
- Global expansion through dedicated teams in the US and Europe.
Kaushik Mudda, Co-founder and CEO of Ethereal Machines, emphasized the importance of their indigenous CNC controller project, which has been under development for over four years. This CNC controller, often described as the “brain and nervous system” of CNC machines, is poised to become a crucial sovereign technology for India, advancing self-reliance in manufacturing.
New Manufacturing Facility to Power Next Growth Phase
The upcoming facility will be located in Doddaballapur, on Bengaluru’s outskirts, spanning six times the size of their current plant. Construction is expected to start in phases later this year, enabling the company to ramp up from operating 60 machines to over 1,000 eventually.
At present, Ethereal Machines operates a fully automated, 24×7 smart manufacturing facility in Peenya, Bengaluru. Since their $13 million Series A funding in 2024, they have tripled their Machining-as-a-Service (MaaS) revenue and increased production capacity tenfold, positioning themselves strongly for this next expansion.
Focus on Semiconductor, Consumer Electronics, and Energy Sectors
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines designs and manufactures proprietary multi-axis CNC machines delivering high-precision components to a variety of industries including aerospace, defence, healthcare, semiconductor, and consumer electronics.
While aerospace and healthcare were the company’s initial focus markets, semiconductor manufacturing, consumer electronics, and energy infrastructure have emerged as major growth drivers. The startup is already fulfilling global orders for semiconductor and electronics firms and anticipates these sectors to contribute a growing share of its revenue over the next year.
Increasing demand also comes from power-generation equipment manufacturers, fueled by the expanding artificial intelligence infrastructure and data center ecosystems worldwide.
Global and Domestic Market Presence
Currently, about 70% of Ethereal Machines’ revenue is generated from exports to the US, Europe, the UK, and Japan. However, the company foresees rising demand domestically as India’s manufacturing activities intensify.
Conclusion
Ethereal Machines’ latest funding marks a significant milestone in bolstering India’s advanced manufacturing landscape. Through innovative CNC technology, expanding production capabilities, and strategic global outreach, the startup is set to drive industrial growth domestically and internationally.
Their focus on pioneering technologies and scalable manufacturing solutions positions Ethereal Machines as a key player empowering India to become a self-reliant powerhouse in precision engineering and advanced industrial production.
