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

Deeptech manufacturing startup Ethereal Machines is set to raise INR 264.5 crore (around USD 28.5 million) in its Series B funding round, led by Avataar Venture Partners with participation from Peak XV Partners, Novellus Systems and other investors.

The fundraise comes nearly two years after the company secured USD 13 million in its Series A round in June 2024. According to filings with the Registrar of Companies (RoC), the board has approved the issuance of 29,214 Series B preference shares at a price of INR 90,536 each to raise the planned amount.

Avataar Venture Partners will lead the round with an investment of INR 199.55 crore (USD 21.5 million). Existing investor Peak XV Partners will contribute INR 30.7 crore, while Novellus Systems is set to invest INR 27.9 crore. Other participants in the round include Sustained Innovations LLP, Eventures India Pvt Ltd, Shailesh Lakhani and Indigo Circle Advisors.

Founded in 2014 by Kaushik Mudda and Navin Jain, Bengaluru-based Ethereal Machines focuses on advanced manufacturing technologies. The company produces proprietary multi-axis CNC machines and also offers “Machining-as-a-Service” solutions, enabling businesses to access high-precision components on demand.

Its offerings cater to sectors such as aerospace, healthcare and consumer electronics, where precision engineering and rapid production are critical. The company positions its services as a way to deliver cost-effective and scalable manufacturing solutions.

Following the Series B allotment, Avataar Venture Partners will hold a 13.69% stake in the company. Peak XV Partners will increase its stake to 16.36%, while Novellus Systems will own 1.92%. The co-founders will collectively retain a 24.17% stake in the company.