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Funding · Professional & Local Services

Ethereal Machines raises $28.5M in Series B led by Avataar Venture Partners

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Date
Company
Ethereal Machines
What it does
precision engineering components via CNC machines
Kind
Funding
Amount
₹264.5 Cr
Stage
Series B
Based in
Bengaluru
Founded
2014
Sector
Professional & Local Services

What they do

Ethereal Machines produces precision engineering components using its proprietary multi-axis CNC machines

What happened

The company raised $28.5 million in its Series B round, led by Avataar Venture Partners, with participation from Peak XV Partners, Novellus Systems, and others

Why it matters

The valuation of the company jumped to $158 million, reflecting a 3.8X increase from its previous valuation of Rs 383 crore

The details

  • Ethereal Machines, a deeptech manufacturing startup, raised $28.5 million in its Series B round.
  • The round was led by Avataar Venture Partners, with participation from Peak XV Partners, Novellus Systems, and other investors.
  • The company passed a special resolution to issue 29,214 Series B preference shares at an issue price of 90,536 each.
  • Avataar Venture Partners will invest $21.5 million, while Peak XV Partners and Novellus Systems will invest $3.3 million and $3.0 million, respectively.
  • The valuation of the company is estimated at $158 million, reflecting a 3.8X increase from its previous valuation of Rs 383 crore.

The bigger picture

  • The company reported operating revenue of Rs 11.45 crore for the fiscal year ended March 2025, despite posting a loss of Rs 27.27 crore during the same period.

About the business

  • Ethereal Machines produces precision engineering components using its proprietary multi-axis CNC machines.
  • The company's machines enable the production of precision components at fast and cost-effective rates.
  • The startup is based in Bengaluru and has been in operation since 2016.
  • The company's revenue for the fiscal year ended March 2025 was Rs 11.45 crore, but it posted a loss of Rs 27.27 crore during the same period.

The deal

Type
funding

Investors

  • Avataar Venture Partners (lead) — A venture capital firm focused on deeptech and manufacturing startups.
  • Peak XV Partners (existing investor) — An existing investor in Ethereal Machines.
  • Novellus Systems (investor) — A company involved in semiconductor manufacturing equipment.
  • Sustained Innovations LLP (investor) — A venture capital firm focused on early-stage startups.
  • Eventures India Pvt Ltd (investor) — An angel investor network focused on Indian startups.
  • Shailesh Lakhani (investor) — An angel investor with experience in the manufacturing sector.
  • Indigo Circle Advisors (investor) — A consulting and investment firm focused on startups.

Founders

  • Kaushik Mudda, co-founder
  • Navin Jain, co-founder

About Ethereal Machines

Product
Multi-axis CNC machines and precision component production through Machining-as-a-Service platform, plus AI-powered Vesper factory operating software
Customers
Industries including aerospace, defence, healthcare, semiconductors and consumer electronics
How it makes money
Manufacturing equipment sales and machining-as-a-service platform
What sets it apart
Proprietary multi-axis CNC controller and integrated manufacturing software stack
Operations
In-house design and manufacturing with partnerships with Indian shipyards and manufacturers

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