Star Air, the aviation arm of the Sanjay Ghodawat Group (SGG), said on Thursday that it has completed the first tranche of its Rs 350 crore Series B funding round, raising Rs 150 crore from a consortium of marquee investors including Micro labs Ltd, Deepak Agarwal of Bikaji foods and others. The airline further plans to raise an additional Rs 200 crore by FY26-27.
Star Air said that its first external fundraise will power the next phase of expansion with a goal to operate 50 aircraft by 2030.
The newly raised capital will be deployed to expand the airline’s fleet and route network, strengthen NSOP (Non-Scheduled Operator Permit) operations and enhance its MRO (Maintenance, Repair & Overhaul) capabilities.
“This fundraise brings us closer to our vision of building a comprehensive aviation platform spanning Airline operations, NSOP services, MRO facilities, Cargo and Aviation Training. Our immediate goal is to connect more cities and communities across India with swift, secure, comfortable, and affordable air travel,” said Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group.
The Bengaluru-based airline claims that it has established a strong foundation of operational discipline and is one of only two profitable airlines in India. It said that with substantial capex planned over the coming years, they are poised to strengthen their market position and accelerate their expansion in the dynamic aviation landscape.
Captain Simran Singh Tiwana, CEO, Star Air, added, “This fundraise marks a major step toward strengthening Star Air’s operational backbone. It will enable us to accelerate fleet expansion, enhance route efficiency, and further invest in NSOP and MRO capabilities. As we progress toward our 50-aircraft goal by 2030, our focus remains on maintaining operational excellence, safety and delivering a seamless experience for our customers.”
Founded in 2019, Star Air is a player in India’s regional aviation sector. Since its inception, it has served over 2 million passengers across 31 destinations. The airline currently operates a fleet of eleven aircraft – eight Embraer E175s and three Embraer E145s – and aims to expand to 50 aircraft by 2030.