Akasa raises second round of investments from marquee Indian investors
Akasa Air, launched in 2022, has been bankrolled to a large extent by the late Rakesh Jhunjhunwala, who was the biggest investor in the first round of investments for the airline taken in before the launch of the airline. Over time, however, with the airline busy establishing itself and its tap of ongoing funding (sales and leaseback income) slowing down due to issues at Boeing, the airline had to go out and look for more funds to ride it out. Akasa is a Boeing 737 MAX customer who placed a second order for the 737 MAX aircraft in January 2023.
Akasa signs up for the second round of investments.
Akasa Air announced today that it has signed agreements with marquee investors to infuse fresh capital into the airline. The investors include Premji Invest, the global investment arm of Mr Azim Premji, and Claypond Capital, the investment office of Dr Ranjan Pai. The airline will also receive investments from 360 ONE Asset, an asset management firm.
The Jhunjhunwala family has also committed to an additional capital infusion into Akasa Air. They own over 40% of the airline, so they could invest more to retain their stakes at the existing levels. The amount of money that will be invested is not known at the moment.
Here is what Vinay Dube, Founder and CEO of Akasa Air, had to say,
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.
Akasa’s Chief Financial Officer, Ankur Goel, said this,
At Akasa Air, there is nothing that we do for the short term. 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. The airline is proud to have earned the confidence of marquee investors, who have chosen to believe in our dream and join us in our journey towards actively shaping the future of Indian aviation.
The airline should now have enough funds to ride out the drought of aircraft deliveries and scale up.
Bottomline
Akasa Air has confirmed that, subject to regulatory approvals, it will raise a second round of investments from investors such as Premji Invest (Azim Premji) and Claypond Capital (Manipal Group). The Jhunjhunwala family will also continue to contribute fresh capital.
What do you think of the growth path of Akasa Air after this round of investments?
Liked our articles and our efforts? Please pay an amount you are comfortable with; an amount you believe is the fair price for the content you have consumed. Please enter an amount in the box below and click on the button to pay; you can use Netbanking, Debit/Credit Cards, UPI, QR codes, or any Wallet to pay. Every contribution helps cover the cost of the content generated for your benefit.
(Important: to receive confirmation and details of your transaction, please enter a valid email address in the pop-up form that will appear after you click the ‘Pay Now’ button. For international transactions, use Paypal to process the transaction.)
We are not putting our articles behind any paywall where you are asked to pay before you read an article. We are asking you to pay after you have read the article if you are satisfied with the quality and our efforts.
More from Live from a Lounge
