Premji Invest, Ranjan Pai invests in Akasa Air

Akasa Air has secured investments from Premji Invest, Claypond Capital, and funds managed by 360 ONE Asset. The Jhunjhunwala family which owns close to 40% stake has also committed additional capital.

While the airline didn’t disclose the size of the deal, sources said that the total investment is of around $ 135 million (Rs 1,200 crore) which is equally divided among the new investors.

The Jhunjhunwala family which owns around 40 % stake will remain the largest shareholder after the investment while ET couldn’t ascertain clarity on the change in ownership of other shareholders structure after the investment.

Akasa, which operates 27 aircraft, said that it is awaiting regulatory approval for the transaction and the funds will support its growth plans, including fleet expansion and international operations, the company said.

Vinay Dube, Founder and CEO of Akasa Air, said, "These are not just financial transactions; they are an investment in our vision and commitment to building an airline for generations."

Ankur Goel, Chief Financial Officer, added, "These strategic investments represent a pivotal milestone in our journey and ensure long-term financial stability, enabling us to continue building a sustainable, future-focused business."


ET had previously reported that Premji Invest and Claypond Capital were in discussions to invest approximately $130 million- $140 million for a minority stake. However, the airline had declined to comment at that time.

The funds will be used to support Akasa's expansion plans and manage aircraft payments. The new capital, pending regulatory approval, is also intended to support Akasa Air's expansion plans, including fleet growth and international operations, according to the company.

A person briefed on the deal said Premji Invest and Claypond are eager to invest in well-run, consumer-facing startups that are close to breaking even and have a large serviceable market.

Investors are also encouraged by the prospects of the carrier in what is increasingly becoming a two-horse race dominated by IndiGo and Air India, given the bankruptcy of Go First and the financial woes of SpiceJet, the operating fleet of which has been reduced to 22 planes from 98 before Covid.

The airline had placed an initial order of 72 Boeing 737 Boeing Max aircraft and later added another four aircraft to the order. In January, the airline followed it up with an order for another 150 aircraft of the same variant.

But since then its growth has stunted due to Boeing's aircraft production has slowed dramatically in the face of increased scrutiny from regulators, airlines and lawmakers following a January incident when a door plug blew off a plane.

“The funds raised will fuel Akasa Air’s path to becoming one of the top 30 airlines in the world by the end of this decade, enabling the airline to further its unique contribution to India’s extraordinary growth as an aviation hub,” the company said.

In the fiscal year ending March 31, 2024 (FY24), Akasa Air reported a total income of Rs 3,144.38 crore, a significant increase from Rs 777.84 crore in the previous fiscal year. Despite this revenue growth, the airline's net loss widened to Rs 1,670.06 crore in FY24, up from Rs 744.53.