Ethereal Machines, a Bengaluru-based precision manufacturing startup, has signed a Memorandum of Understanding with the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. The partnership focuses on enabling startups with access to cutting-edge manufacturing infrastructure, fostering industry mentorship, and supporting defence-tech innovation as part of a coordinated national ecosystem initiative.
This MoU follows an agreement with the Karnataka government, signed in February 2025, to establish Ethereal’s 300,000 sq. ft. smart factory in Bengaluru. The DPIIT partnership will operationalize these goals by offering manufacturing startups access to physical infrastructure, technical mentorship, training programmes, and curated factory experiences.
The collaboration is part of DPIIT’s larger initiative launched in early 2025, which includes over 60 such public-private partnerships with Indian corporates and deeptech startups. These partnerships are intended to formalize national support structures for mentoring, piloting advanced manufacturing projects, infrastructure sharing, and enabling startups to scale production to global quality benchmarks.
Ethereal Machines develops 3-axis and 5-axis CNC technologies used to produce high-precision components for aerospace, defence, healthcare, and consumer electronics industries. The company aims to leverage its expertise to accelerate indigenous defence-tech capabilities under the Make in India initiative.
The company said the initiative aligns with India’s strategic ambition of reaching USD 1 trillion in manufacturing exports by 2030. The smart factory in Bengaluru, which is part of the Karnataka government agreement, will also host training programmes to develop skilled talent in the precision manufacturing sector.
Founded in 2014 by Kaushik Mudda and Navin Jain, Ethereal Machines currently operates a 55,000 sq. ft. facility with over 60 machines and 300 employees. Backed by Peak XV Partners and Blume Ventures, it has raised more than USD 20 million to date.
