Ethereal Machines Secures $28.5 Million Series B to Expand Global Footprint

Ethereal Machines, an Indian precision manufacturing and deep-technology company, has closed a $28.5 million Series B round led by Avataar Ventures, with participation from existing investors Peak XV Partners and other institutional backers. The company, which operates an automated smart factory in Bengaluru, has tripled revenue from its Machining-as-a-Service business and increased manufacturing capacity tenfold since its Series A in 2024. Proceeds will fund a 300,000-square-foot advanced manufacturing campus near Bengaluru, continued development of its Vesper AI-driven factory operating platform, and the creation of India's first indigenous multi-axis CNC controller. CEO and Co-Founder Kaushik Mudda stated the funding supports the company's mission to build globally competitive manufacturing infrastructure from India, with dedicated teams planned for North America and Europe to serve aerospace, defense, medical technology, and semiconductor customers.

This funding round is significant not for the additive manufacturing industry directly, but for the broader precision manufacturing ecosystem that increasingly intersects with AM workflows. Ethereal Machines operates in the subtractive and hybrid manufacturing space, competing with global CNC service bureaus and contract manufacturers. Its Machining-as-a-Service model and proprietary factory software address a persistent gap in the AM value chain: post-processing and high-precision finishing. As metal AM adoption grows, the availability of automated, software-driven subtractive capacity becomes a critical enabler for end-to-part production. The company's focus on indigenous CNC controller development also aligns with broader supply-chain localization trends, particularly relevant as defense and aerospace buyers seek domestic sources for critical manufacturing technology. The planned 300,000-square-foot facility, described as one of the largest advanced manufacturing campuses outside China, signals a scale ambition that could position Ethereal as a significant global contract manufacturing player.

From a practical standpoint, Ethereal Machines is executing a capital-intensive play that requires disciplined deployment. The company must demonstrate that its Machining-as-a-Service model can achieve consistent margins at scale, and that its Vesper software platform delivers measurable throughput improvements for customers. For AM industry buyers, the key takeaway is that Ethereal's expansion increases available post-processing capacity in a market where finishing remains a bottleneck. The indigenous CNC controller project, while strategically important for India's industrial autonomy, is a multi-year engineering effort with uncertain near-term commercial impact. The company's success will ultimately be measured by its ability to convert this funding into repeatable, high-margin production contracts with aerospace and medical device customers.