Ethereal Machines, a Bengaluru-based startup co-founded by Kaushik Mudda and Navin Jain in 2014, is making waves in the precision manufacturing sector with its innovative approach to computer numerical control (CNC) machining. Initially inspired by the limitations of a robotic arm they built during their college years, the duo ventured into CNC technology, aiming to solve the challenges of modern manufacturing.
The Early Days: From 3-Axis to 5-Axis Precision
Ethereal’s journey began with simpler three-axis CNC machines. However, as industries demanded more intricate components, Mudda and Jain quickly realized the need for a significant technological leap. In 2018, they introduced their first five-axis machine, a critical milestone that won them an international industry award and attracted $1 million in seed funding from Blume Ventures.
This early phase was marked by both technical and market challenges. Despite building machines capable of advanced precision, the founders often faced skepticism from potential customers, who doubted that a young Indian startup could produce world-class CNC systems. This skepticism extended to financing models, with some clients proposing unconventional payment terms like, “We’ll use your machine for a year, and then we’ll pay you.”
A Strategic Pivot: Machining as a Service
Realizing that selling machines directly to customers might not be the most sustainable model, Ethereal Machines pivoted to a service-based approach. Today, they operate a fleet of high-precision machines, offering ‘Machining as a Service’ (MaaS) to clients globally. This shift has allowed them to control production quality, optimize costs, and scale rapidly without the pressures of direct machine sales.
The strategy has paid off. In the last 12 months, Ethereal has seen a 5x revenue growth, and their 21-machine fleet operates around the clock in a cutting-edge, 50,000 sq ft ‘lights-out factory’ in Bengaluru. The company plans to expand to 75-100 machines by the end of the current fiscal year, with a five-year goal of reaching 750-1,000 machines, positioning itself as a major player in precision manufacturing.
Global Reach and Industry Impact
Ethereal’s customer base spans aerospace, defense, healthcare, and consumer electronics, serving marquee clients in the US, Israel, Germany, and India. Their advanced manufacturing capabilities have positioned them as a critical supplier in these high-stakes industries, where precision and reliability are paramount.
To support this ambitious growth, Ethereal recently secured $13 million in Series A funding from Peak XV and Steadview Capital. The investment will fund a factory expansion five times the current size, enabling the company to meet rising global demand for precision-engineered components.
The Road Ahead
With a team that has grown to 180 strong, Ethereal Machines is not just building cutting-edge CNC systems but redefining the manufacturing landscape through its service-driven model. Their commitment to innovation and operational excellence has set them on a path to become a global leader in precision manufacturing, proving that world-class engineering can emerge from India’s vibrant startup ecosystem.