Ethereal Machines Series B Funding of Rs 264.5 Crore
Ethereal Machines, a deeptech manufacturing startup, is set to secure Rs 264.5 crore, roughly $28.5 million, in its Series B funding round. This round is led by Avataar Venture Partners, with contributions from Peak XV Partners, Novellus Systems, and others. This funding comes nearly two years after the company raised $13 million in its Series A round in June 2024.
The board at Ethereal Machines approved a special resolution to issue 29,214 Series B preference shares at an issue price of 90,536 each to raise the aforementioned amount, according to their filing with the Registrar of Companies (RoC). Avataar Venture Partners will lead the funding with an investment of Rs 199.55 crore ($21.5 million), followed by existing investor Peak XV Partners and Novellus Systems, contributing Rs 30.7 crore and Rs 27.9 crore, respectively. Additional participants in this funding round include Sustained Innovations LLP, Eventures India Pvt Ltd, Shailesh Lakhani, and Indigo Circle Advisors.
Valuation and Company Background
Startup Superb estimates that the round will value Ethereal Machines at Rs 1,470 crore ($158 million). This reflects a significant increase, showing a 3.8X rise from its previous valuation of Rs 383 crore during the $13 million round. Back in December, YourStory had reported that Ethereal Machines was in preliminary discussions to raise $30 million in the Series B funding round.
About Ethereal Machines
Founded by Kaushik Mudda and Navin Jain, Ethereal Machines has been in operation for a decade and specializes in the production of precision engineering components through its proprietary multi-axis CNC machines. These advanced machines allow for the efficient and cost-effective production of high-precision components.
After the issuance of Series B shares, Avataar Venture Partners will possess a 13.69% stake in Ethereal Machines. Existing investor Peak XV Partners will enhance its share to 16.36%, while Novellus Systems will hold 1.92%. Collectively, the co-founders of the company will retain a 24.17% stake.
Financial Performance
The Bengaluru-based company reported operating revenue of Rs 11.45 crore for the fiscal year ending March 2025. During the same period, it also incurred a loss of Rs 27.27 crore.