New Delhi, June 11 -- Precision manufacturing startup Ethereal Machines has secured $28.5 million (about Rs 272.7 crore) in its Series B funding round led by growth-stage venture capital firm Avataar Ventures.
Existing investor Peak XV Partners and a few other investors also took part in the round, the startup said in a statement.
"The world is actively looking for resilient alternatives in global manufacturing, and India has a once-in-a-generation opportunity to emerge as a serious deep-tech manufacturing powerhouse. Ethereal Machines is building that foundation from precision CNC (Computer Numerical Control) systems to intelligent factory software and large-scale automated manufacturing," said Kaushik Mudda, co-founder and chief executive. "This capital allows us to accelerate that journey and position India as a trusted global hub for high- precision manufacturing."
The startup said it will use the funds to scale its precision manufacturing capacity, develop India's first domestic CNC controller-the command centre that governs every axis of machine movement and delivers the micron-level precision-and expand the company's global footprint in the United States and Europe.
Specifically, it plans to build a 300,000 sq. ft. facility equipped with state-of-the-art multi-axis CNC systems, a software-first approach, and cleanroom capabilities designed to serve global aerospace, defence, medical, semiconductor and consumer electronics companies at scale. The company will also invest in its proprietary factory operating software stack that uses AI to predict manufacturing lead times, track factory uptime and output in real time and optimise production workflows.
Founded in 2014 by Mudda and Navin Jain, Ethereal Machines produces precision engineering components via its proprietary CNC machines. It offers advanced "machining as a service" (MaaS) to allow major industries, including aerospace, healthcare, and consumer electronics to rapidly prototype and mass-produce intricate components.
The startup previously raised $13 million (Rs 109 crore) in a Series A funding round in June 2024 led by Peak XV Partners and Steadview Capital. Previously, in June 2023, Peak XV's Surge, Blume Ventures, Finvolve, 9Unicorns, Venture Catalysts and T2D3 Capital infused $7.3 million (Rs 59.8 crore) into the startup.
Since its last funding round two years ago, the company claims to have grown its MaaS revenue three times year-over-year and scaled production capacity by 10 times across its Smart Factory operations.
Published by HT Digital Content Services with permission from VC Circle.