Ethereal Machines Secures $28.5M for Advanced CNC Manufacturing Expansion
Deeptech firm Ethereal Machines has raised $28.5 million, led by Avataar Ventures and Peak XV Partners. The Bengaluru-based company designs high-precision multi-axis CNC machines and offers Machining-as-a-Service. Funds will establish a new mega-factory, develop India's first domestic CNC controller, and expand its AI software, targeting global markets.
Key points
- Bengaluru-based Ethereal Machines, a deeptech startup founded in 2014, has raised $28.5 million in a funding round led by Avataar Ventures and Peak XV Partners.
- The company designs and manufactures proprietary multi-axis CNC machines, such as Aura and Nimbus, offering sub-10-micron accuracy at a lower cost than global competitors.
- Ethereal Machines also operates a Machining-as-a-Service (MaaS) business, supplying high-precision components for aerospace, defense, healthcare, and semiconductor sectors.
- The new capital will fund a 300,000 sq ft mega-factory near Bengaluru, the development of India's first domestic CNC controller, and the expansion of its AI-driven software platform, Vesper.
- The investment follows a $13 million Series A round in June 2024, during which the company tripled its MaaS revenue and scaled production tenfold.
Ethereal Machines, an Indian deeptech startup specializing in advanced manufacturing, has successfully closed a $28.5 million funding round. The investment was spearheaded by Avataar Ventures, with significant participation from Peak XV Partners and other investors. This funding aims to bolster the company's capabilities in high-precision manufacturing.
The Bengaluru-based firm, established in 2014 by Kaushik Mudda and Navin Jain, focuses on developing proprietary multi-axis CNC (Computer Numerical Control) machines, capable of achieving sub-10-micron accuracy. Ethereal also runs a Machining-as-a-Service (MaaS) division, providing critical components to demanding industries like aerospace, defense, healthcare, and semiconductors. The company claims its machines operate at a fraction of the cost of international rivals, attributed to its own intellectual property.
With the newly acquired capital, Ethereal Machines plans to construct a large, 300,000 square-foot manufacturing facility on the outskirts of Bengaluru. Furthermore, the funds will support the creation of India's first indigenous CNC controller and the enhancement of its AI-powered factory software platform, Vesper. The company also intends to establish a presence in the US and European markets. This latest investment comes shortly after a $13 million Series A round in June 2024, a period during which Ethereal reported substantial growth in its MaaS revenue and production capacity.
Sources
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