Deep-Tech Momentum in Indian Manufacturing
Bengaluru-based deep-tech startup Ethereal Machines has successfully closed a $28.5 million Series B funding round. The investment was led by Avataar Ventures, with continued support from existing backer Peak XV Partners. This milestone arrives roughly two years after the company’s $13 million Series A round, signaling a rapid acceleration in the firm’s growth trajectory.
Business Model and Traction
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines bridges the gap between hardware and software in precision engineering. The company provides a dual-pronged approach: manufacturing proprietary multi-axis CNC machines and offering high-precision components via its Machining-as-a-Service (MaaS) platform.
- Traction: Revenue from the MaaS platform has tripled year-on-year since the Series A round.
- Operations: Production capacity has increased tenfold, with current operations anchored in Peenya, Bengaluru.
- Innovation: The company continues to develop its proprietary ‘Vesper’ AI-driven factory operating software and is building India’s first indigenous multi-axis CNC controller.
Future Outlook
The company has secured an MoU with the Karnataka government to develop a 300,000-square-foot facility, projected to generate over 2,000 jobs. With this capital injection, Ethereal Machines aims to solidify its foothold in sectors like aerospace, defense, and semiconductors, while pushing for aggressive market entry into the US and Europe.