Ethereal Machines, a pioneering deep-tech manufacturing startup, has successfully raised $13 million in its Series A funding round led by Peak XV Partners and Steadview Capital. Existing investors including Blume Ventures, Enam Investments, and Sandeep Singhal also participated in this round, underscoring confidence in Ethereal’s innovative approach to precision engineering.
The funds raised will primarily be allocated towards advancing research and development initiatives, including the development of a multi-axis CNC controller. Additionally, Ethereal Machines plans to commence the construction of its second “Smart Factory,” a sprawling 250,000 square feet facility located on the outskirts of Bengaluru near the upcoming Foxconn facility. This new factory is expected to bolster Ethereal’s production capacity significantly within the next 12 months.
Founded by Kaushik Mudda and Navin Jain in 2014, Ethereal Machines specializes in manufacturing proprietary multi-axis Computer Numerical Control (CNC) machines. These machines are pivotal in producing precision parts for sectors such as aerospace, healthcare, and consumer electronics. Over the past year, Ethereal has achieved remarkable milestones, including a fourfold increase in revenue and a threefold increase in production capacity at its existing “Smart Factory” in Peenya, Bangalore.
“We are thrilled by the potential these funds unlock for Ethereal Machines,” said Kaushik Mudda, Co-founder of Ethereal Machines. “Our new Smart Factory will not only amplify our production capabilities but also support various industries by delivering high-quality, cost-effective precision components. This expansion aligns with our vision to fortify India’s global standing in precision manufacturing, drive economic growth, and foster job creation.”
Ethereal Machines’ advanced CNC technology has already proven instrumental in reducing production times by 25-40% and improving cost efficiencies by 10-30% for its clientele. The company’s commitment to innovation and operational excellence positions it strongly amidst India’s ambitious manufacturing goals, including becoming a $1 trillion manufacturing economy by 2030.
Shailesh Lakhani, Managing Director at Peak XV Partners, emphasized their confidence in Ethereal’s growth trajectory, stating, “We believe in the transformative impact of precision manufacturing across India’s development priorities. Ethereal Machines is well-positioned to lead this charge.”
As Ethereal Machines gears up for its next phase of expansion, it aims to leverage these investments to further enhance its technological capabilities, expand market reach, and reinforce its leadership in the precision manufacturing sector globally.