India, June 11 -- Deeptech manufacturing startup Ethereal Machines has raised $28.5 Mn (about Rs.272 Cr) in its Series B funding round led by Avataar Ventures, with participation from existing investor Peak XV Partners and other backers.

The startup said it will use the fresh capital to build a 3 Lakh sq ft mega-factory near Bengaluru, invest in its AI-powered factory operating software Vesper, and develop what it claims will be India's first indigenous multi-axis CNC controller.

A portion of the raised funds will also go towards expanding its footprint in the US and Europe. The startup said it will further strengthen its presence in India's semiconductor ecosystem by supplying high-precision components for chip manufacturing infrastruc...