Deeptech manufacturing startup Ethereal Machines has raised $28.5 million (around ₹245 crore) in a Series B funding round led by Avataar Ventures, with participation from existing investor Peak XV Partners and several other backers. The fresh capital marks one of the larger recent funding rounds in India’s advanced manufacturing ecosystem.
Founded in Bengaluru, Ethereal Machines develops proprietary multi-axis CNC machines and precision manufacturing solutions for industries such as aerospace, defence, healthcare, semiconductors and consumer electronics. The company combines advanced hardware with software-driven manufacturing technologies.
The startup plans to use the new funding to build a large manufacturing facility near Bengaluru, develop India’s first indigenous CNC controller, and further expand its AI-powered manufacturing software platform. The company is also looking to strengthen its presence in international markets, including the US and Europe.
The investment highlights growing investor confidence in India’s deeptech and precision manufacturing sector, an area increasingly viewed as critical for strengthening domestic industrial capabilities and supporting high-value manufacturing.
With demand rising across aerospace, semiconductor and advanced engineering sectors, Ethereal Machines aims to position itself as a global player in next-generation manufacturing technologies while contributing to India’s ambitions in high-tech industrial innovation.
