Azim Premji, Ranjan Pai Family Offices Invests In Akasa Air

India’s youngest airline, Akasa Air, has made deals with investors to raise new funds from a group of well-known Indian investors. These include Premji Invest (the investment branch of Azim Premji), Claypond Capital (run by Dr. Ranjan Pai), and funds managed by 360 ONE Asset, an asset management firm.

The airline mentioned that the family of the late billionaire Rakesh Jhunjhunwala has promised more funds to help support it. Jhunjhunwala's investment in August 2022 was crucial in starting the airline.

The airline didn’t reveal the exact size of the deal, but sources say the total investment is about $135 million (Rs 1,200 crore), with the new investors each getting an equal share.

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Akasa, which currently has 27 aircraft, mentioned that it is waiting for approval from regulators for the deal. The funds will help support its growth, including expanding its fleet and starting international operations.

A source familiar with the deal said Premji Invest and Claypond are excited to invest in well-managed startups that are close to making a profit and have a large market to serve.

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." 

“We are thankful to our marquee investors for placing their confidence in Akasa Air and its leadership, and to the Jhunjhunwala family for their unwavering faith in the Akasian dream. These investment agreements will empower us to build on the future that every Akasian has envisioned—one that’s bright for each of us as well as for all of India, as we transform the way customers experience air travel,” he said.

"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. 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," said Ankur Goel, Chief Financial Officer, Akasa Air.

The airline first ordered 72 Boeing 737 Max aircraft and later added four more to the order. In January, it made another order for 150 more aircraft of the same model.

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