Ethereal Machines announces US$7.3M funding to help transform India into a manufacturing superpower

2026-07-10 06:01:42 Business

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Bengaluru, 24 July 2023 ? Ethereal Machines, India\'s leading advanced manufacturing player, today announced a funding round of US$7.3 million, which saw participation from Peak XV\'s Surge, Blume Ventures, Ganapathy Subramaniam, Partner at Celesta Capital; Mathew Cyriac, the former head of Blackstone India; and Lip-Bu Tan, executive chairman of Cadence Design Systems and Chairman of Walden International. Ganapathy Subramaniam and Mathew Cyriac were instrumental in the recent blockbuster IPO of Ideaforge Technology. Finvolve, 9Unicorns, Venture Catalysts and T2D3 Capital also participated in the round.

Ethereal Machines is poised to capture enormous growth opportunities in India\'s manufacturing sector, which accounts for 17% of the nation\'s GDP and over 27.3 million workers. The Indian government also continues to push to position India as a global manufacturing hub via several initiatives, such as Make in India, China+1 and the Production-Linked Incentives (PLI), moving towards more automated and process-driven manufacturing. As such, Ethereal\'s advanced precision machining capabilities will cater to high-growth industries where demand for more high-end precision components is increasing.

CNC machines are used widely across many industries as its precision milling works with a variety of raw materials to produce finished parts, giving engineers the ability to create prototypes and commercial products. However, they are extremely expensive and require high-quality engineering to operate in industrial applications.

Ethereal\'s CNC machines use proprietary technology to help manufacturers achieve precision engineering components at scale, and at a faster and more cost-effective rate. Ethereal then re-invests into building factories that produce these precision engineering components, allowing them to capture demand across the manufacturing value chain. On average, Ethereal\'s manufacturing solutions reduce costs for their customers by 30% and production lead times by 40%. Ethereal\'s first factory is based out of Bangalore, India. These factories will be a one-stop solution for manufacturers. from their design to prototype to production stages.

Ethereal focuses on supplying much needed precision engineering parts to the aerospace, defence, automobile and healthcare industries. These are industries that have been identified as growth sectors in India and command precision machining ? investments in aerospace and defence manufacturing are projected to grow fivefold and reach INR 5 lakh crores by 2047, and India\'s space budget for 2023 stands at INR 12,500 crores. The drone manufacturing industry is also expected to reach INR 900 crores by 2024. Furthermore, investments of approximately INR 95,000 crores have been earmarked for the aviation sector in the next four years (2023-2027).

\"For India to be a superpower, advanced manufacturing is key. India needs to ace the amalgamation of both hardware and software to achieve excellence in precision machining, the foundation of large scale industrialization and to be known as a global manufacturing powerhouse. Ethereal Machines is in a unique position to build supply chain resiliency and increase productivity across key manufacturing factors, and we\'re committed to developing India\'s manufacturing value chains to reach global competitiveness. The new funds will enable us to scale our operations and cater to more high-end engineering applications locally and internationally,\" said Kaushik Mudda, co-founder of Ethereal Machines.

About Ethereal Machines

Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines is a leading advanced manufacturing company based in India that produces precision engineering components via its proprietary multi-axis CNC machines. Ethereal\'s machines enable precision engineering components to be produced at fast and cost-effective rates. The company\'s manufacturing solutions optimise productivity and supply chain resiliency across the manufacturing value chain in India.

About Peak XV Partners

Peak XV Partners (formerly Sequoia Capital India & SEA) is a leading venture capital and growth investing firm investing across India, Southeast Asia and beyond. Peak XV (pronounced Peak Fifteen) was the name used for Mount Everest before it was called that. It embodies everything we believe about building long-lasting businesses that stand tall and inspire greatness.

Over the last 17 years of our operations in the region, Peak XV has grown to manage over USD 9 billion in capital across 13 funds and invested in over 400 companies.

About Surge

Surge is Peak XV Partners\' rapid-scale up program. Surge combines up to USD 3 Mn of seed capital with company-building workshops, a global curriculum and support from a community of exceptional mentors and founders. The program\'s goal is to supercharge early-stage startups in India and Southeast Asia and give founders an unfair advantage, right out of the gate.