Ethereal Machines Raises USD 13 Mn in Series A led by Peak XV and Steadview Capital With the raised funds, the Bengaluru-based startup aims to build a new smart factory in Bengaluru and hire AI and software engineers to expand its line of products.

Engineering hardware startup Ethereal Machines announced that it has raised USD 13 million in a Series A round led by Peak XV Partners and Steadview Capital. Existing investors Blume Ventures, Enam Investments, and Sandeep Singhal also participated in this round.

The firm last received USD 7.3 million in funding in July of last year from Blume Ventures, Surge, and Peak XV, among other investors.

The money will be used to build a new smart factory in Bengaluru and hire AI and software engineers to expand its line of products.

The new factory would come up over the next 12 months and span 250,000 square feet.

Kaushik Mudda, Co-founder, Ethereal Machines, said, "This fundraise will allow us to enhance our R&D initiatives and expand our production capacity, positioning India as a global leader in precision manufacturing. Our new Smart Factory will not only elevate our production capabilities but also support the growth of various industries by delivering high-quality, cost-effective precision components."

"Our vision is to strengthen India's GDP, fortify infrastructure, boost exports, and create numerous job opportunities, driving the country towards unmatched global competitiveness," he added.

Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines produces precise engineering components quickly and economically by utilising multi-axis CNC machines. The startup provides services to the consumer electronics, healthcare, and aerospace sectors.

Over the last year, the company claims to have reduced production times for customers by 25-40% and improved their cost efficiency by 10-30%.

The firm provides space-tech, drone-tech, medical diagnostics, and thermal imaging services to clients in the US, Europe, Israel, and India.