Ethereal Machines to Raise USD 28.5 Mn in Series B Led by Avataar

Precision manufacturing startup Ethereal Machines has raised $28.5 million in a Series B round led by Avataar Ventures, with participation from existing investor Peak XV Partners and others.

It is the company's largest raise to date — and it comes roughly eighteen months after its $13 million Series A. In that window, Ethereal grew its Machining-as-a-Service revenue threefold year-on-year and scaled production capacity tenfold across its Bengaluru smart factory.

Where the capital goes

The round funds five priorities:

• a new 300,000 sq ft mega-factory on the outskirts of Bengaluru, under a memorandum of understanding with the Government of Karnataka;
• India's first indigenous multi-axis CNC controller — the core intelligence that, until now, has been imported;
• an AI-driven factory-software platform that turns a drawing into a validated, production-ready process;
• dedicated teams in the United States and Europe, to serve global customers directly; and
• deeper capacity for precision components across aerospace, healthcare, semiconductors, and consumer electronics.

Why it matters

Ethereal designs, builds, and operates its own multi-axis CNC machines, and manufactures precision components for customers worldwide through its Machining-as-a-Service model. The Series B accelerates a single thesis: that world-class precision manufacturing can be designed, built, and operated end-to-end from India — and shipped to the world.