Ethereal Machines signs MoU with Karnataka Government to establish factory in Bengaluru

Bengaluru-based Ethereal Machines, which manufactures multi-axis computer numerical control (CNC) machines for multiple sectors, has signed a Memorandum of Understanding (MoU) with the Government of Karnataka at Invest Karnataka 2025 to set up a three-lakh-square-feet smart factory in Bengaluru. 

The facility is expected to advance precision manufacturing, engineering, and research and development (R&D) while contributing to India and Karnataka’s industrial growth and global competitiveness.

The smart factory will leverage Ethereal Machines’ proprietary intellectual property and multi-axis CNC machines to manufacture precision components for sectors such as aerospace, healthcare, and consumer electronics. The company is among the limited global players specialising in five-axis CNC machining, a technology that enhances accuracy, efficiency, and innovation in manufacturing.

With Karnataka and India looking to position themselves as key hubs for manufacturing excellence, the establishment of this facility aligns with broader efforts to strengthen the country’s industrial capabilities. Ethereal Machines said it looks to support this transformation by contributing to the development of advanced manufacturing infrastructure in the region.

Ethereal Machines, founded in 2014 by Kaushik Mudda and Navin Jain, is an advanced manufacturing company based in Bengaluru, India. The company specialises in designing and building proprietary multi-axis CNC machines, which they utilise to manufacture precision components for industries such as aerospace, healthcare, and consumer electronics.

Initially, Ethereal Machines focused on selling their CNC machines. However, due to market skepticism, they pivoted to a "machining-as-a-service" model. In this approach, they use their in-house developed five-axis CNC machines to produce parts for clients worldwide, effectively reducing production times by 25-40% and improving cost efficiency by 10-30%.

In 2024, the company raised $13 million in a Series A funding round led by Peak XV Partners and Steadview Capital. The funds are earmarked for research and development, building India's first multi-axis CNC controller, and constructing a new 250,000-square-foot "Smart Factory" near Bengaluru. This expansion aims to enhance their production capacity and position India as a global leader in precision manufacturing.