Akasa Air said on Thursday that it has signed agreements with marquee investors to infuse fresh capital into the airline. A consortium of investors, including Premji Invest, the global investment arm of IT Czar Azim Premji, Claypond Capital, the investment office of Ranjan Pai, and funds managed by 360 ONE Asset, a leading asset management firm, has signed investment agreements with Akasa Air.
Independently, the family of late ace investor Rakesh Jhunjhunwala, a key stakeholder in the airline, has committed to an additional capital infusion. All these agreements are subject to regulatory approval.
While Akasa Air did not disclose the financial details of the investments, reports suggest that the airline has raised capital to the tune of $ 130-140 million. Akasa said that the fund will be utilised in its ambitious path of becoming one of the top 30 airlines in the world by the end of this decade.
As per Akasa, the fresh investment will be utilised to power its ambitious growth plans and enhance customer experience. The funds will also be used to drive international expansion. “These are not just financial transactions, they are an investment in our vision and commitment to building an airline for generations,” said Vinay Dube, Founder and CEO of Akasa Air.
Akasa Air was launched in August 2022 it currently connects with 22 domestic and five international cities. The airline has a fleet of 27 aircraft and 226 more aircraft on order with Boeing. Akasa closed the calendar year 2024 with a market share of 4.6%, making it India's third-largest airline in India. The two big players IndiGo and Air India group control nearly 90% of India's domestic aviation market.
As per the available data, the Jhunjhunwala family held a 45.97% stake in the airline while Vinay Dube has 16.13%. Vinay's brothers Sanjay and Niraj have 7.59% shares each. Madhav Bhatkuly owns 9.41% of the airline while PAR Capital Ventures Llc has 6.37%.
Ankur Goel, Chief Financial Officer of Akasa Air said that these strategic investments represent a pivotal milestone in their journey and ensure long-term financial stability, enabling us to continue building a sustainable, future-focused business. “Akasa Air continues to be well-capitalised, and these investments allow us to secure enduring, sustainable growth, with a financial safeguard to weather any unexpected challenges, thus reinforcing our readiness for the future,” added Goyal.