Machines secures $13 million in funding, led by Peak XV and Steadview.

Ethereal Machines, an advanced manufacturing startup, has secured $13 million in a Series A funding round led by Peak XV Partners and Steadview Capital, with participation from existing investors Blume Ventures, Enam Investments, and Sandeep Singhal. The company announced that the funds will be used for research and development, creating multi-axis CNC controllers, and constructing a new 250,000-square-foot smart factory on the outskirts of Bengaluru within the next year.

Founded by Kaushik Mudda and Navin Jain, Ethereal Machines specializes in producing precision engineering components using their proprietary multi-axis CNC machines. These machines enable fast and cost-effective production of precision components. The startup serves customers in the USA, Europe, Israel, and India, and has manufactured components for various emerging deep-tech companies in sectors such as space-tech, drones, medical diagnostics, and thermal imaging.

Ethereal Machines claims that its solutions can reduce customer costs by 30% and production lead times by 40% on average. The company has also introduced two new machines, Aura and Nimbus. Over the past 12 months, Ethereal Machines has reported a fourfold increase in revenue and a threefold increase in production capacity.

In a previous funding round 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 held the largest external stake in the company at over 18%, followed by Surge Ventures with more than 17%.

For the fiscal year 2023, Ethereal Machines reported operational revenues of Rs 2.30 crore, 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 year.