Ethereal Machines to Build 300,000 Sq Ft Mega Factory Near Bengaluru After Raising $28.5 Million

Bengaluru-based Ethereal Machines is set to significantly expand its manufacturing footprint after securing $28.5 million (approximately ₹264.5 crore) in a Series B funding round and signing a Memorandum of Understanding (MoU) with the Government of Karnataka to establish a new mega factory on the outskirts of Bengaluru.

The upcoming facility, spanning 300,000 square feet, is expected to become a major hub for advanced CNC machining and precision engineering. The project marks a significant milestone in the company’s growth journey as it seeks to strengthen its position in India’s rapidly expanding high-precision manufacturing sector.

The funding round was led by Avataar Ventures, with participation from existing and new investors including Peak XV Partners, Novellus Systems, Sustained Innovations, and Eventures India. A portion of the capital raised will be deployed towards developing the new manufacturing facility and scaling production capabilities.

Currently, Ethereal Machines operates a fully automated smart manufacturing unit in Bengaluru’s Peenya industrial area. The company specializes in producing high-precision components for critical industries such as aerospace, defence, healthcare, semiconductors, and consumer electronics through its innovative Machining-as-a-Service model.

The new factory is expected to dramatically increase the company’s manufacturing capacity. Ethereal Machines plans to scale from more than 60 CNC machines currently in operation to over 1,000 machines in future phases, enabling it to cater to growing global demand for precision-engineered components.

Exports continue to play a crucial role in the company’s business strategy. Around 70 percent of Ethereal Machines’ current revenue comes from international markets, including the United States, Europe, the United Kingdom, and Japan. The expanded manufacturing infrastructure is expected to further strengthen its ability to serve global customers while positioning India as a competitive destination for advanced manufacturing.

The development also aligns with Karnataka’s efforts to attract high-value manufacturing investments and strengthen Bengaluru’s reputation as a hub for engineering innovation and industrial technology. As industries worldwide increasingly seek reliable and technologically advanced supply chain partners, Ethereal Machines’ expansion highlights the growing role of Indian manufacturers in the global precision engineering ecosystem.

While the company has not yet disclosed the exact investment planned for the factory or a project completion timeline, the announcement signals a major step forward in India’s advanced manufacturing ambitions.