Ethereal Machines, a deeptech startup based in Bengaluru, announced that it has raised $13 million (about Rs 108.6 crore) in a Series A funding round. The round was led by Peak XV Partners and Steadview Capital, with additional contributions from existing investors including Blume Ventures, Enam Investments, and Sandeep Singhal. The company plans to use this investment for research and development, including the creation of India's first multi-axis CNC controller, and to begin building its second "Smart Factory" in the next 12 months.

The planned facility, encompassing 250,000 square feet, will be located on the outskirts of Bengaluru, near the upcoming Foxconn facility. Ethereal Machines specializes in developing proprietary multi-axis computer numerical control (CNC) machines in India, which are utilized to manufacture precision components for industries such as aerospace, healthcare, and consumer electronics.

The startup's inaugural smart factory in Peenya, Bengaluru, serves a diverse clientele from the US, Europe, Israel, and India.