Advanced manufacturing startup Ethereal Machines has successfully raised $13 million in a Series A funding round led by Peak XV Partners and Steadview Capital. Existing investors Blume Ventures, Enam Investments, and Sandeep Singhal also participated in this round.
The funds will be directed towards research and development, the construction of multi-axis CNC controllers, and the establishment of a second smart factory within the next 12 months. The new facility will cover 250,000 square feet on the outskirts of Bengaluru.
Founded by Kaushik Mudda and Navin Jain, Ethereal Machines specializes in producing precision engineering components using proprietary multi-axis CNC machines. These machines facilitate the production of precision components rapidly and cost-effectively. Ethereal serves clients across the USA, Europe, Israel, and India, providing precision components to numerous emerging companies in sectors such as space-tech, drones, medical diagnostics, and thermal imaging.
Ethereal’s manufacturing solutions reportedly reduce costs for customers by 30% and cut production lead times by 40%. The company has recently introduced two new machines, Aura and Nimbus, to its product line. Over the past 12 months, Ethereal Machines has experienced a fourfold increase in revenue and a threefold increase in production capacity.
In July last year, Ethereal Machines raised $7.3 million from Peak XV’s Surge, Blume Ventures, and others. According to startup data intelligence platform TheKredible, Blume Ventures was the largest external stakeholder in the company as of the last funding round, holding over an 18% stake, followed by Surge Ventures with more than a 17% stake.
Ethereal Machines reported revenue from operations of Rs 2.30 crore in FY23, up from Rs 60 lakh in FY22. However, the company’s losses also increased to Rs 4.69 crore in FY23 from Rs 2.6 crore in the previous fiscal year.
