Bengaluru-based deeptech startup Ethereal Machines has raised $28.5 million in a Series B funding round led by Avataar Ventures, with participation from existing investor Peak XV Partners and other institutional backers. The investment will help the company strengthen its advanced precision manufacturing capabilities while expanding its presence in international markets.
The fresh capital will primarily be used to establish a 300,000-square-foot advanced manufacturing facility near Bengaluru, which is expected to become one of the largest precision manufacturing campuses outside China. The new facility is projected to create over 2,000 jobs and significantly increase the company’s production capacity.
Ethereal Machines also plans to accelerate the development of Vesper, its AI-powered factory operating platform that optimizes production workflows, predicts manufacturing timelines and enhances operational efficiency. Additionally, the company is investing in India’s first indigenous multi-axis CNC controller to reduce dependence on imported manufacturing technologies.
To strengthen its global footprint, the startup will establish dedicated teams across the United States and Europe, targeting customers in aerospace, defence, healthcare, semiconductor and advanced manufacturing sectors. Since its Series A funding in 2024, Ethereal Machines has tripled its Machining-as-a-Service (MaaS) revenue and expanded production capacity tenfold, positioning itself as a key player in India’s growing deeptech manufacturing ecosystem.
