A consortium of investors comprising Premji Invest, Claypond Capital and 360 One Asset will invest an unspecified sum into Akasa Air. The Jhunjhunwala family, who are the largest shareholders in the low-cost airline, has also committed to an additional capital infusion.
With 27 narrow body aircraft in its fleet, the airline noted that these fresh funds will be utilised to power Akasa Air’s growth plans, including international expansion and enhance customer experience. The airline has ambitions to become one of the top 30 airlines in the world by 2030.
Since taking its first flight in August 2022, this would be Akasa’s first major fund-raising exercise. The airline said the agreements it signed on Thursday with the investors are subject to regulatory approval.
CFO Ankur Goel said, “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.”
Akasa, whose fleet is entirely made up of Boeing 737 Max single-aisle, short-haul planes, was issued a warning letter by DGCA for lapses a few weeks ago. In December, the DGCA suspended two of its senior executives — director of training and director of flight operations – over training lapses.
Akasa currently connects 22 domestic and five international cities. It has placed a firm order of 226 Boeing 737 Max airplanes which will be delivered by 2032. The airline closed CY2024 with a market share of 4.6% in the domestic market, making it the third largest airline after IndiGo and Air India group.