Ethereal Machines raises $13M in Series A funding from Peak XV, Steadview Capital
Ethereal Machines, which manufactures multi-axis computer numerical control machines, will use the capital to expand R&D and its manufacturing facility.
Bengaluru=based , which manufactures multi-axis computer numerical control (CNC) machines for multiple sectors, has raised $13 million in a Series A round of funding led by and .
The round also saw participation from returning investors , Enam Investments, and Sandeep Singhal.
The startup plans to use the capital for research and development and to build its second 'Smart Factory' facility, spanning 250,000 square feet in Bengaluru, adjacent to the upcoming Foxconn facility, over the next 12 months. This facility is in addition to its existing 50,000 facility in Peenya, Bengaluru.
Ethereal Machines also plans to build India’s first multi-axis CNC controller. The startup has also launched two machines, Aura and Nimbus, to achieve sub-10 micron accuracy for manufacturing precision components.
The company had last raised $7.3 million from Peak XV’s Surge, Blume Ventures, and other investors in July last year.
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines uses multi-axis CNC machines to produce precision engineering components in a fast and cost-effective manner. The startup serves the aerospace, healthcare, and consumer electronics industries.
“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,” said Kaushik Mudda, Co-founder, Ethereal Machines, in a statement.
"Our vision is to strengthen India’s GDP, fortify infrastructure, boost exports, and create numerous job opportunities, driving the country towards unmatched global competitiveness,” he added.
Ethereal Machines plans on benefitting from the renewed manufacturing push for Make in India, in addition to the China+1 global strategy and India's production linked incentive scheme.
Over the last year, the company claims to have reduced production times for customers by 25-40% and improved their cost efficiency by 10-30%. The startup works with customers from the United States, Europe, Israel and India across space-tech, drone-tech, medical diagnostics, and thermal imaging.
“We expect manufacturing in India to be a multi-decadal trend, and Ethereal Machines is
strategically positioned to benefit from this. We admire Kaushik and Navin’s commitment to
developing homegrown 5-axis CNC machines over the last decade. Their dedication to mould the
future of precision manufacturing is inspiring, and we look forward to partnering with them on this journey,” said Puneet Kumar, Managing Director at Steadview Capital.
Shailesh Lakhani, Managing Director at Peak XV, said in the statement, “Kaushik and Navin have been committed to solving core engineering problems to enable precision manufacturing for several years. Having seen them 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."
Edited by Swetha Kannan