Ethereal Machines, a pioneering manufacturing startup, has successfully raised $13 million in a Series A funding round led by Peak XV Partners and Steadview Capital. This significant funding round also saw participation from existing investors Blume Ventures, ENAM Investments Limited, and Sandeep Singhal, Managing Director of WestBridge Capital.

The newly acquired funds will be directed towards advancing Ethereal Machines’ research and development initiatives. This includes the ambitious project of building India’s first multi-axis CNC machine and constructing a second state-of-the-art smart factory in Bengaluru within the next 12 months. This expansion is a critical step in Ethereal’s mission to elevate India’s manufacturing sector and contribute substantially to the nation’s economic growth. 🇮🇳

The Founders’ Vision

Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines specializes in the production of CNC (Computer Numerical Control) machines that cater to the escalating global demand for precision engineering parts. Their innovative technology significantly reduces production times by 25-40% and enhances cost efficiency by 10-30%.

Over the past year, Ethereal Machines has seen a fourfold surge in revenue and a threefold increase in production capacity. The introduction of two new machines, Aura and Nimbus, has enabled the achievement of sub-10-micron accuracies in precision-manufactured parts. These advancements underscore Ethereal’s commitment to pushing the boundaries of precision engineering.

Ethereal’s existing smart factory in Peenya, Bengaluru, serves a diverse clientele from the US, Europe, Israel, and India. The factory produces high-precision parts for deeptech sectors, including spacetech, drones, medical diagnostics, and thermal imaging. Ethereal’s global reach and technological prowess position it as a key player in the precision manufacturing landscape.

Investors’ Confidence

Shailesh Lakhani, Managing Director of Peak XV, expressed strong support for Ethereal’s vision: “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 strongly believe in the growth of precision manufacturing as it underpins many of India’s priority areas of development.”

Similarly, Puneet Kumar, Managing Director at Steadview Capital, highlighted Ethereal’s strategic position in the industry: “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 moulding the future of precision manufacturing is inspiring, and we look forward to partnering with them on this journey.”

The funds raised will enable Ethereal Machines to enhance their R&D initiatives and expand their production capacity, thereby 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 of Ethereal Machines.

Ethereal Machines plans to leverage the renewed manufacturing push under the “Make in India” initiative, the China+1 global strategy, and India’s production-linked incentive scheme. The startup aims to significantly reduce production times and improve cost efficiency for its customers, further cementing its role in advancing India’s manufacturing prowess.

Ethereal Machines’ recent funding round marks a significant milestone in their journey to revolutionize the precision manufacturing industry. With a clear vision, cutting-edge technology, and robust investor support, Ethereal Machines is poised to drive substantial growth and innovation in the manufacturing sector, both in India and globally.

For more updates on Ethereal Machines and their groundbreaking work, stay tuned!