Bengaluru-based deep-tech startup Ethereal Machines is planning to raise around ₹264.5 crore (about $28–30 million) in a new Series B funding round. This round values the company at nearly ₹1,470 crore ($150 million+), which is almost four times higher than its previous valuation of ₹383 crore in June 2024. The round is being led by Avataar Venture Partners, with existing investors Peak XV Partners and Novellus Systems also taking part.
Founded by Kaushik Mudda and Navin Jain, the company started as a small garage project. The founders began by building drones and robotic arms but later moved into manufacturing after facing challenges in getting precise machine parts.
Read More: Shopflo acquired by Pine Labs in strategic deal
From small beginnings to advanced manufacturing
In its early days, many people doubted whether a young Indian startup could build complex CNC machines. To overcome this, Ethereal Machines changed its approach and started offering “Machining as a Service” (MaaS). Instead of only selling machines, it began producing high-precision parts for industries like aerospace, defence, healthcare, and electronics.
The company builds its machines in-house, including products like the Halo, Aura, and Nimbus. These machines help clients reduce production costs and improve efficiency. Ethereal’s smart factory in Bengaluru runs 24/7, and the company is also working on expanding its manufacturing capacity with new facilities.
Strong growth with big future plans
Ethereal Machines has seen strong growth in revenue, reaching ₹16.9 crore in FY25. However, it is still making losses as it continues to invest heavily in research, development, and infrastructure.
With the new funding, the company plans to expand globally by setting up teams in the US and Europe. It is also working on advanced technologies like 7-axis machines, using AI to detect defects, and building India’s first locally developed CNC controller. This funding round could help Ethereal Machines grow faster and become a strong global player in precision manufacturing.