Ethereal Machines in early talks to raise $30M from Avataar, others at $150M valuation

Deeptech manufacturing startup Ethereal Machines is in early discussions to raise around $30 million in a Series B funding round at a $150 million valuation, three people aware of the matter told YourStory.

Ethereal Machines is currently in early-stage discussions with Avataar Ventures, along with a few other investors, sources said, requesting anonymity.

"The discussions are currently at a due diligence level, and nothing has been finalised yet. But if the round goes through, it will give a big boost to India's deeptech manufacturing sector," one of the three people said.

Should the round go through, it will be among the biggest deeptech funding rounds in India, bolstering confidence in the country's deeptech ecosystem, which otherwise has seen few growth-capital rounds, despite an extensive focus on the space.

The Peak XV Partners-backed company was also in talks with Glade Brook Capital for the round, but the discussions didn't bear fruit, YourStory learnt.

Kaushik Mudda, CEO of Ethereal Machines, Avataar Ventures, and Glade Brook Capital, did not respond to YourStory's request for comments.

According to Tracxn data, Series B and Series C funding rounds, typically considered as growth rounds, have fallen to 15 in the first 11 months of 2025 from 35 in 2024.

The round sizes, however, have been substantially bigger this year, with average growth-stage cheque sizes for deeptech startups around $22 million, against $11 million last year, the data showed.

Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines is a manufacturing company that produces precision engineering components using proprietary multi-axis CNC machines. Its solutions optimise productivity and supply chain resiliency across India's manufacturing value chain.

Many industries have adopted CNC machines for their precision milling capabilities, which produce finished parts from various raw materials.

The startup had last raised $13 million in a Series A round in July 2024 led by Peak XV and Steadview Capital, which had valued the company at a little above $66 million, according to Tracxn.