Ethereal Machines Nets $13 Mn To Expand Precision Manufacturing Play

Deeptech-based manufacturing startup Ethereal Machines has raised $13 Mn (INR 108.6 Cr) in a Series A funding round co-led by Peak XV Partners and Steadview Capital.

The round also saw participation from existing investors, including Blume Ventures, Enam Investments and WestBridge Capital’s cofounder and managing partner Sandeep Singhal.

The fresh proceeds will be deployed for research and development, besides building India’s first multi-axis CNC controller and to commence construction of the company’s second smart factory within the next 12 months.

The startup said the new facility will span 250,000 square feet on the outskirts of Bengaluru, adjacent to the upcoming Foxconn facility.

Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines carries out production and focuses primarily into manufacturing aerospace, medical and consumer electronic components. The company claims to specialise in building proprietary multi-axis computer numerical control (CNC) machines in India and is also involved in rapid prototyping.

In March, Ethereal Machines inaugurated its first Smart Factory in Peenya, Bengaluru which spans 50,000 square feet and operates round the clock with a host of automated machines producing precision parts.

“This fundraise will allow us to enhance our R&D initiatives and expand our production capacity, positioning India as a global leader in precision manufacturing. Our new smart factory will not only elevate our production capabilities but also support the growth of various industries by delivering high-quality, cost-effective precision components,” said Mudda.

With its existing smart factory, the company claims to cater to customers across the globe, including US, Europe, Israel and India, where the customers provide Ethereal Machines with their engineering drawings, which are then transformed into physical parts made from materials such as aluminium, titanium, steel, and engineering plastics.

Over the last 12 months, the Bengaluru-based startup claimed to have posted 4X growth in its revenue and 3X surge in production capacity. The company also launched two new machines, Aura and Nimbus, which helped Ethereal Machines achieve sub-10-micron accuracies on its precision-manufactured parts.

Ethereal Machines raised $7.3 Mn funding from Peak XV Partners’ Surge and Blume Ventures, in July 2023. The round also saw participation from a host of angel investors including Ganapathy Subramaniam, partner at Celesta Capital, Mathew Cyriac, former head of Blackstone India, and Lip-Bu Tan, executive chairman of Cadence Design Systems and chairman of Walden International.