Ethereal Machines, a Deep-Tech manufacturing start-up, raised $13 million in a Series A funding round led by Peak XV Partners and Steadview Capital. Existing investors Blume Ventures, Enam Investments, and Sandeep Singhal also participated in this round.

The funds from this round will be utilized for research and development (R&D), building a multi-axis CNC controller, and to commence construction of its second “Smart Factory” within the next 12 months. This new facility will span 250,000 square feet on the outskirts of Bengaluru, adjacent to the upcoming Foxconn facility.

The startup specializes in building proprietary multi-axis Computer Numerical Control (CNC) machines in India and utilises the CNC machines to manufacture precision parts for the aerospace, healthcare, and consumer electronics industries. According to the company, it has reduced production times for customers by 25-40 per cent and improved their cost efficiency by 10-30 per cent over the past year.

Kaushik Mudda, Co-founder of Ethereal Machines shared, “This fundraise will allow us to enhance our R&D initiatives and expand our production capacity, positioning India as a global leader in precision manufacturing. Our new Smart Factory will not only elevate our production capabilities but also support the growth of various industries by delivering high-quality, cost-effective precision components. Our vision is to strengthen India’s GDP, fortify infrastructure, boost exports, and create numerous job opportunities, driving the country towards unmatched global competitiveness.”

Ethereal Machines has recently inaugurated its latest “Smart Factory” in Peenya, Bangalore, which spans 50,000 square feet. It operates 24x7 with a host of automated machines producing precision parts. Over the last 12 months, the startup has seen a four times increase in revenue and a three times increase in production capacity. The company also launched two new machines, Aura and Nimbus, enabling it to achieve sub-10-micron accuracies on its precision-manufactured parts—an unprecedented achievement for Indian manufacturing.

Shailesh Lakhani, MD, Peak XV, said, “Kaushik and Navin have been committed to solving core engineering problems to enable precision manufacturing for several years. We have strong belief in the growth of precision manufacturing as it underpins many of India’s priority areas of development.”

At its existing “Smart Factory,” Ethereal caters to customers from the USA, Europe, Israel, and India. According to a company statement, Ethereal Machines is positioned to capture substantial growth opportunities in India’s manufacturing sector, which accounts for 17 per cent of India’s GDP.

“With China+1, PLI schemes, indigenization, and the renewed push for Make in India, an increased manufacturing output from India is crucial. Ethereal’s “Smart Factories” will play a significant role in the country’s aim to be a $1 trillion manufacturing economy by 2030 and help it become the world’s third-largest strategic manufacturing hub after China and the United States,” the company said.

(Inputs from bl intern Vidushi Nautiyal)

Related Topics