JSA Advises Peak XV Partners on USD 28.5 Million Series B in Ethereal Machines
JSA Advocates & Solicitors has advised Peak XV Partners on its participation in the USD 28.5 million Series B investment in Ethereal Machines Private Limited, a Bengaluru-based deep-tech manufacturing company. The transaction was announced in June 2026 and brings together a syndicate of institutional investors in one of India’s most closely watched advanced manufacturing fundraises.
Introduction
Deep-tech startup Ethereal Machines raised USD 28.5 million in a Series B funding round led by Avataar Ventures, with participation from Peak XV Partners and other investors. The JSA mandate covered the investment documentation and all transaction aspects for Peak XV Partners Investments VIII, one of the participating vehicles in the round. Other investors in the round included AVP Fund III and additional co-investors.
The Bengaluru-based company designs and manufactures proprietary multi-axis CNC machines and offers precision component production through its Machining-as-a-Service (MaaS) platform. The company serves clients across aerospace, defence, healthcare, semiconductors, consumer electronics and other high-precision engineering sectors.
Deal Value
The Series B round was valued at approximately USD 28.5 million. According to filings with the Registrar of Companies, the board approved the issuance of 29,214 Series B preference shares at a price of INR 90,536 each. Avataar Venture Partners led with an investment of INR 199.55 crore (USD 21.5 million), while existing investor Peak XV Partners contributed INR 30.7 crore and Novellus Systems INR 27.9 crore.
Legal Teams Involved
JSA Advocates & Solicitors advised Peak XV Partners Investments VIII on investment documentation and transaction aspects for the Series B funding round.
The JSA deal team comprised:
- Minhaz Lokhandwala, Partner
- Maitri Parekh, Counsel
- Akarsh Aryan, Associate
Further details on legal advisers to other investor participants were not disclosed.
Significance and Impact
This transaction is notable as one of the larger Series B rounds closed in the Indian deep-tech manufacturing sector in 2026. Since its USD 13 million Series A round in June 2024, Ethereal Machines has grown its MaaS revenue threefold year-on-year and scaled production capacity tenfold.
As part of its growth strategy, Ethereal Machines plans to build a 300,000-square-foot facility near Bengaluru under a previously signed MOU with the Karnataka government. The company said the capital will be deployed to advance India’s self-reliance in advanced precision manufacturing, with funds earmarked across five key priorities — including constructing a mega factory and building dedicated teams in the United States and Europe.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
