Ethereal Machines, a deeptech manufacturing startup, raised $28.5 million in a Series B funding round led by Avataar Ventures, with participation from Peak XV Partners and other investors, the company announced. The fresh capital will be used to build a 3 lakh sq ft mega-factory near Bengaluru, enhance its AI-powered factory software Vesper, and develop India’s first indigenous multi-axis CNC controller.
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines has raised nearly $50 million to date, including a $13 million Series A round in 2024 co-led by Peak XV Partners and Steadview Capital. The startup designs and operates proprietary multi-axis CNC machines, with its flagship platform Nimbus delivering sub-10-micron accuracy at production scale. It serves sectors such as aerospace, defence, healthcare, semiconductors, and consumer electronics through its Machining-as-a-Service model from its Bengaluru factory.
The funding round positions Ethereal Machines to expand its footprint in the US and Europe and strengthen its role in India’s semiconductor ecosystem by supplying high-precision components for chip manufacturing infrastructure. CNC machines, which automate manufacturing using computer software to control tools like drills and mills, are critical for precision manufacturing. Ethereal Machines’ growth reflects rising demand for advanced manufacturing technologies in strategic sectors.
The startup plans to use the new funds to build the large-scale factory near Bengaluru and advance its AI-driven software and CNC controller development. The company’s total funding now approaches $50 million, underscoring investor confidence in its technology and expansion strategy, according to inc42.com.