Ethereal Machines, a leading Indian precision manufacturing and deep-technology company, has secured $28.5 million in Series B funding to accelerate the expansion of its advanced manufacturing capabilities and strengthen India’s position in the global high-precision engineering sector. The funding round was led by Avataar Ventures, with participation from existing investors including Peak XV Partners and other institutional backers. The investment follows a period of significant growth for the company, during which it expanded production capacity, strengthened its technology platform and broadened its customer base across several high-value industries.
Since raising its Series A funding in 2024, Ethereal Machines has tripled revenue from its Machining-as-a-Service business while increasing manufacturing capacity tenfold through its automated smart factory operations in Bengaluru. The company operates one of India’s most advanced automated precision manufacturing facilities, running continuously to support domestic and international customers.
The newly raised capital will be deployed across several strategic initiatives, including the construction of a large-scale manufacturing facility near Bengaluru. The planned facility, spanning more than 300,000 square feet, is expected to become one of the largest advanced manufacturing campuses outside China and create more than 2,000 employment opportunities.
A significant portion of the investment will also support the continued development of Vesper, the company’s proprietary factory operating platform. The software leverages artificial intelligence to predict production timelines, monitor equipment performance and optimize manufacturing workflows, enabling greater operational efficiency while maintaining extremely high precision standards.
Ethereal Machines will also invest in the development of India’s first indigenous multi-axis CNC controller, a critical component that governs machine movement and enables micron-level manufacturing accuracy. The initiative aligns with broader efforts to strengthen domestic industrial capabilities and reduce dependence on imported manufacturing technologies.
Additional investments will focus on expanding support for India’s growing semiconductor ecosystem and strengthening the company’s presence in global markets. Dedicated teams are expected to be established across North America and Europe to serve customers in aerospace, defence, medical technology and advanced manufacturing sectors.
Chief Executive Officer and Co-Founder Kaushik Mudda said the funding represents an important milestone in the company’s mission to build globally competitive manufacturing infrastructure from India. He noted that growing demand for resilient supply chains and advanced engineering capabilities presents a significant opportunity for India to emerge as a major global manufacturing destination.
With proprietary machine platforms, advanced factory software and a rapidly expanding production footprint, Ethereal Machines aims to play a central role in shaping the future of precision manufacturing while supporting India’s ambitions in advanced industrial technology and global supply-chain diversification.
