Bengaluru-based deep-tech startup Ethereal Machines is set to raise about ₹264.5 crore ($28–30 million) in a Series B round at a valuation of roughly ₹1,470 crore ($150 million+), nearly quadrupling its June 2024 mark. The round is led by Avataar Venture Partners, with participation from existing backers Peak XV Partners and Novellus Systems, reflecting rising investor confidence in India’s precision manufacturing ecosystem.
From garage project to advanced manufacturing
Founded by engineers Kaushik Mudda and Navin Jain, Ethereal Machines began as a garage initiative focused on drones and robotic arms. Supply chain gaps and difficulty sourcing high-tolerance components pushed the team into designing and building their own computer numerical control (CNC) systems—an inflection that shaped the company’s current product and services strategy.
Facing early scepticism about whether a young Indian firm could deliver complex CNC platforms, the company pivoted to a “Machining as a Service” model. Under this MaaS offering, Ethereal manufactures high-precision parts for aerospace, defence, healthcare, and electronics clients, complementing direct machine sales and providing a recurring revenue stream.
Products, capacity, and operations
Ethereal designs and manufactures its machines in-house, including models such as Halo, Aura, and Nimbus. These multi-axis CNC platforms are aimed at lowering cycle times, improving accuracy, and reducing total cost of ownership for industrial customers.
The company runs a 24/7 smart factory in Bengaluru and is expanding capacity with additional facilities. The integrated setup—from controller software to hardware—helps shorten lead times and tighten quality control, a key differentiator in precision engineering.
Financial performance and growth plans
Ethereal Machines reported revenue of ₹16.9 crore in FY25. The company remains loss-making as it ramps investments in R&D, plant infrastructure, and global go-to-market capabilities—typical for capital-intensive deep-tech ventures.
Proceeds from the new round will support international expansion, including team builds in the United States and Europe. The roadmap includes 7-axis machining systems, AI-driven defect detection for in-process quality assurance, and development of what the company positions as India’s first domestically engineered CNC controller. With fresh capital and marquee investors, Ethereal aims to accelerate its transition from a services-led approach to a globally competitive precision manufacturing platform.
