Funding · Professional & Local Services

Ethereal Machines raises $28.5M Series B

By Startup Enthusiast · 11 June 2026

What they do

Ethereal Machines designs and builds multi-axis CNC machines and offers Machining-as-a-Service

It raised a $28.5M Series B led by Avataar Ventures, with Peak XV, Novellus, and Steadview Capital

The company plans a 300,000 sq ft mega-factory and India's first domestic multi-axis CNC controller

Ethereal Machines raised $28.5M in a Series B round.
The round was led by Avataar Ventures.
Peak XV Partners, Novellus Systems, and Steadview Capital also participated.
The company will use the funds to build a 300,000 sq ft mega-factory in Doddaballapur near Bengaluru.
It will also develop India's first domestic multi-axis CNC controller.
The company plans to expand its AI-driven factory software Vesper.
New teams will be set up in the US and Europe.

India consumes about $2.2B worth of CNC machines annually, with $1.2B imported.
The global precision manufacturing market is $220B and projected to reach $400B by 2030.
China+1 supply chain diversification creates an opportunity for India.
Investor interest in deeptech is rising, with VC firms launching dedicated funds.

Ethereal Machines designs and builds proprietary multi-axis CNC machines (automated cutting/carving tools).
It operates a Machining-as-a-Service (MaaS) model, supplying high-precision components to aerospace, defence, healthcare, and semiconductor clients.
Its flagship machines are Aura (3-axis) and Nimbus (5-axis), achieving sub-10-micron accuracy.
It claims to be the first Indian manufacturer to achieve sub-10-micron accuracy at production scale.
The company operates at one-sixth the cost of global peers due to its IP.
It has developed Vesper, an AI-driven factory operating software.
Its current factory in Peenya, Bengaluru is fully automated and runs 24/7 across three shifts.
The current machine fleet has over 60 units.
About 70% of revenue comes from exports to the US, UK, Europe, Japan, and Southeast Asia.

Build a 300,000 sq ft mega-factory in Doddaballapur near Bengaluru, next to Foxconn.
Construction will begin by end of 2026 in three phases.
Develop India's first domestic multi-axis CNC controller (cutting trials underway).
Expand the AI-driven factory software Vesper.
Scale the machine fleet to 250-300 units over 18-24 months, and eventually to over 1,000 machines.
Set up new teams in the US and Europe.
Signed an MoU with the Government of Karnataka for the mega-factory.

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