Bengaluru-based Ethereal Machines, a precision manufacturing startup that builds multi-axis computer numerical control (CNC) machines and supplies machined parts, has raised US$28.5 million in a round led by Avataar Ventures, with participation from Peak XV Partners and others.

It plans to build a new factory and develop a domestic CNC controller.

The startup designs and builds multi-axis CNC machines and runs a machining-as-a-service business for aerospace, defense, healthcare, and semiconductor customers.

It said the funding will support a 300,000 sq ft facility on Bengaluru’s outskirts, expansion of its Vesper software platform, and new teams in the US and Europe.

Ethereal raised US$13 million in June 2024 and said nearly 70% of its revenue now comes from exports.

Co-founder Kaushik Mudda said India consumes about US$2.2 billion of CNC machines a year, of which about US$1.2 billion is imported. Industry body IMTMA tracks imports and market size for the sector.

CNC controllers are often described as the brain of a machine tool, and the segment is concentrated among global suppliers such as Fanuc, Siemens, and Heidenhain.

🔗 Source: The Economic Times