Ethereal Machines raises $28.5M Series B

Ethereal Machines, a Bengaluru-based deep-tech startup specializing in precision manufacturing, has successfully raised $28.5 million in a Series B funding round. The round was led by Avataar Ventures, with significant participation from existing investor Peak XV Partners and other backers. This capital infusion will be strategically deployed to expand Ethereal Machines' manufacturing capacity, strengthen its software stack, advance technology development, build capabilities for the semiconductor sector, and accelerate global expansion into markets like the United States and Europe. The company, founded in 2014 by Kaushik Mudda and Navin Jain, designs and manufactures proprietary multi-axis CNC machines and offers Machining-as-a-Service (MaaS) to clients in aerospace, defense, healthcare, semiconductors, and consumer electronics. Since its Series A funding in June 2024, Ethereal Machines has tripled its MaaS revenue and expanded production capacity tenfold. The company also plans to build a 300,000-square-foot mega-factory near Bengaluru, in collaboration with the government of India — Karnataka, which is expected to create over 2,000 jobs. This development positions India to become a significant player in the global precision manufacturing market, especially as multinational firms diversify supply chains away from China.