Ethereal Machines raised $28.5 million in its most recent Series B financing round. Avataar Ventures led the investment. The investment included substantial contributions from existing investor Peak XV Partners and others. The capital infusion follows a $13 million Series A round that the company secured just two years prior, in June of 2024. Fresh capital was raised at an astonishing valuation premium, fourfold the previous funding milestone. This surge in investor interest underscores the firm’s proprietary technology and its capacity to upend global manufacturing chains.
Capital deployment and proprietary platform
Established in 2014 by Kaushik Mudda and Navin Jain from Bengaluru, the company is involved in the design and manufacture of its own multi-axis Computer Numerical Control machines. Apart from manufacturing machinery, Ethereal Machines offers large-scale, high-precision component manufacturing solutions through its proprietary Machining-as-a-Service platform.
Ethereal Machines caters to companies that require quality assurance in the engineering industry, such as aerospace, defense, healthcare, semiconductor, and consumer electronics industries. The company has designed proprietary platforms, called Aura and Nimbus, that provide extreme manufacturing accuracy of less than ten microns. However, this in-house infrastructure enables the company to perform precision operations at significantly reduced costs when compared with those of its worldwide rivals.
The deep-tech company aims to use the new fundraising proceeds to ramp up its operations and technology framework aggressively. Strategic investments involve expanding the manufacturing base and developing the first indigenous multi-axis Computer Numerical Control controller box in India.
The funding will help enhance the company’s core software architecture, highlight its semiconductor manufacturing efforts, and help the company expand faster into the international markets in the United States and Europe. Ethereal Machines has grown its business enormously from financing its Series A round, with Machining-as-a-Service revenue growing three times since the funding round and the business’s total production capacity rising tenfold.
Core pillar and massive growth
Ethereal Machines runs its automated operations as part of its Smart Manufacturing Plant located in Peenya, Bengaluru. In an effort to support its imminent huge expansion, the company has signed a formal Memorandum of Understanding with the government of Karnataka to build a massive advanced manufacturing plant of 300,000 sqft close to Bengaluru.
Upon completion, the new production plant will provide over 2,000 local employment opportunities. The new plant is expected to become one of the largest automated advanced manufacturing facilities outside China.
A crucial part of the company’s operational efficiency is Vesper, its proprietary factory operating software. Ethereal Machines is planning to invest in this platform, which makes use of artificial intelligence technology for tracking factory activities in real time, managing complicated production procedures, and forecasting future project timelines very accurately.
The firm has an operating revenue amounting ₹11.45 crore during the financial year 2025. Ethereal Machines experienced a ₹27.27 crore net loss during the 2025 financial year.
Conclusion
This worldwide economic paradigm change opens a specific moment for the advanced manufacturing business house of India. The company’s commitment to precision, cost reduction, and automation in its high-precision engineering makes it poised to be one of the frontrunners in the global landscape of advanced manufacturing solutions. With a forward-looking roadmap backed by the top-tier venture capital firms, the company is poised to redefine deep tech engineering on a global scale.
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