Ethereal Machines Raises $28.5 Million to Build a Homegrown CNC Controller

What happened: Precision-manufacturing startup Ethereal Machines has closed a $28.5 million Series B led by Avataar Ventures, with existing investor Peak XV Partners among the participants. The round arrives close to two years after its $13 million Series A in June 2024.

Why it matters: Proceeds will fund expanded manufacturing capacity, a domestically developed multi-axis CNC controller, software upgrades, semiconductor work and entry into the US and European markets. The company says revenue from its Machining-as-a-Service line has tripled year-on-year since the Series A, while output capacity has grown tenfold.

Industry context: Founded in 2014 by Kaushik Mudda and Navin Jain, the Bengaluru firm designs multi-axis CNC machines and supplies parts to aerospace, defence, healthcare and semiconductor customers.