Deeptech manufacturing startup Ethereal Machines is all set to raise Rs 264.5 crore (approximately $28.5 million) in its Series B round led by Avataar Venture Partners with the participation of Peak XV Partners, Novellus Systems and others.
The company is raising fresh funds nearly two years after its $13 million Series A round in June 2024.
The board at Ethereal Machines passed a special resolution to approve the issuance of 29,214 Series B preference shares at an issue price of 90,536 each to raise the above mentioned amount, according to its filing with the Registrar of Companies (RoC).
Avataar Venture Partners will lead the round with Rs 199.55 crore ($21.5 million), followed by existing investor Peak XV Partners and Novellus Systems, who will invest Rs 30.7 crore and Rs 27.9 crore, respectively. Other participants include Sustained Innovations LLP, Eventures India Pvt Ltd, Shailesh Lakhani, and Indigo Circle Advisors.
According to Entrackr’s estimates, the round will value the company at Rs 1,470 crore ($158 million), reflecting a 3.8X jump from its previous valuation of Rs 383 crore in the $13 million round.
In December, YourStory reported that Ethereal was in early discussions to raise $30 million in a Series B round.
Founded by Kaushik Mudda and Navin Jain, decade-old Ethereal Machines produces precision engineering components via its proprietary multi-axis CNC machines. Its machines enable precision engineering components to be produced at fast and cost-effective rates.
Following the Series B allotment, Avataar Venture Partners will hold a 13.69% stake in the company. Existing investor Peak XV Partners will increase its stake to 16.36%, while Novellus Systems will own 1.92%. The company’s co-founders will collectively retain a 24.17% stake.
On the financial front, the Bengaluru-based company reported Rs 11.45 crore in operating revenue for the fiscal year ended March 2025, while it posted a loss of Rs 27.27 crore during the same period.
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