Premji Invest and Claypond Capital, the family offices of Wipro’s Azim Premji and Manipal Group’s Ranjan Pai, are in talks to invest $125 million for a minority stake in Akasa Air, one of India’s newest airlines.
The cash, once raised, will be utilized to facilitate the expansion of the company and to make advance payments for aircraft. Additionally, it will decrease the ownership percentage of the Jhunjhunwala family and that of cofounder and chief executive Vinay Dube. Collectively, they possess more than 65% ownership in the corporation.
The proposed fundraising values Akasa at a valuation of over $350 million, which is more than four times the initial investment of approximately $35 million provided by the family of the deceased Rakesh Jhunjhunwala. It is uncommon for Indian carriers, which have historically faced difficulties in attracting attention, to display such optimism in their future prospects.
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Akasa Air capitalized on the decrease in aircraft rentals caused by the COVID pandemic, as well as the abundant supply of pilots and cabin personnel, to expand its fleet by a remarkable 24 aircraft. This achievement sets a new record for the fastest fleet expansion by any airline since India liberalized its aviation market in the early 1990s.
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