When Kaushik Mudda and Navin Jain built a robotic arm in college, they didn’t anticipate that its limitations would lead them to revolutionize computer numerical control (CNC) machining. Frustrated by existing options, they decided to build their own machines, founding Ethereal Machines in 2014.
Over the years, they took two bold leaps:
- Scaling from Three-Axis to Five-Axis CNC Machines – They recognized that modern manufacturing required more advanced machines to handle intricate components. Their innovation won them an international industry award.
- Perfecting a Market-Ready Machine – Despite initial skepticism, they spent four years refining their prototype and secured $1 million in seed funding from Blume Ventures.
A Game-Changing Pivot: Machining-as-a-Service
Initially, Ethereal Machines aimed to sell their CNC machines. However, they faced resistance—some customers even suggested using the machine for a year before deciding to pay.
Realizing a larger opportunity, they pivoted to a Machining-as-a-Service (MaaS) model, where they use their own machines to manufacture components for global clients rather than selling the machines themselves. This shift has fueled 5x revenue growth in the past year.
Scaling at Lightning Speed
Ethereal Machines now operates 21 machines in a fully automated “lights-out factory”, running 24/7. Expansion is rapid:
- 100 machines by the end of this fiscal year
- 750 to 1,000 machines within five years
The company recently opened a 50,000 sq ft facility in Bengaluru, serving aerospace, defense, healthcare, and consumer electronics customers across the US, Israel, Germany, and India.
Fueling the Next Phase of Growth
To scale further, Peak XV and Steadview Capital have invested $13 million in Series A funding, which will help Ethereal build a factory 5x bigger.
With cutting-edge automation, global customers, and a bold vision, Ethereal Machines is redefining precision manufacturing—one CNC-cut component at a time.
