Bengaluru-based engineering hardware startup Ethereal Machines has raised $13 million in a Series A funding round led by Peak XV Partners and Steadview Capital. This funding highlights the growing opportunities in the manufacturing sector, buoyed by the government’s “Make in India” push.
Existing investors Blume Ventures, Enam Investments, and Sandeep Singhal also participated in this round, according to a statement released by the firm on June 13. The company plans to use the funds to establish a new smart factory in Karnataka and to hire software and AI engineers for product expansion. Co-founder Kaushik Mudda shared that they have already set up a smart factory in Peenya, doubling their current capacity. The new factory, set to be built on the outskirts of Bangalore, will be five times larger, spanning 250,000 square feet and will be adjacent to the upcoming Foxconn facility. This facility is expected to be operational within the next 12 months.
Founded in 2014 by Mudda and Navin Jain, Ethereal Machines specializes in producing computer numerical control (CNC) machines. These machines are crucial for milling works that enable engineers to create prototypes and commercial products. Mudda mentioned that the funds from this round will also be utilized for research and development, specifically to build India’s first multi-axis CNC controller.
Ethereal’s CNC machines are used across various sectors including aerospace and defense, medical, healthcare, and consumer electronics. Over the past year, the company successfully reduced production times for customers by 25-40 percent and improved cost efficiency by 10-30 percent. Ethereal stands out as one of the few companies globally mastering 5-axis CNC machining, addressing the increasing demand for cost-effective precision engineering components through its proprietary CNC machines.
“Having seen the founders grow and achieve ever-increasing milestones through our Surge programme, Peak XV Partners is thrilled to lead their Series A. We have strong belief in the growth of precision manufacturing as it underpins many of India’s priority areas of development,” said Peak XV managing director Shailesh Lakhani.
In July, Ethereal raised $7.3 million in a round that saw participation from Surge, a Peak XV Partners’ programme for early-stage startups, Blume Ventures, and several angel investors. This latest investment is set to bolster Ethereal Machines’ capabilities and position in the precision manufacturing industry, reinforcing its role in India’s burgeoning manufacturing sector.
