![Akasa Air in Talks to Raise ~ $125 Mn from Consortium that includes Premji Invest, Family Offices of Azim Premji and Ranjan Pai Akasa Air in Talks to Raise ~ $125 Mn from Consortium that includes Premji Invest, Family Offices of Azim Premji and Ranjan Pai](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCVn8UYMVSLTo6adHOvFr86RFHYTFAKUtT8LnYCDOX6LfsrGLwNgFuw4iT7da7dYwzWuKehq787RkfJAXNlnUe5hSMpDRwEGSYjpZ2MWsCGDcQ5BHrFkF9Vz3-y8LXtWJtpt3xnjAFl1oJq_hSu1mRdtRfHIMajJy-R0CdIyQ9U0Xx6_PLdKvxWkVfJJo/s16000-rw/20240823_022345_0000.png)
This investment would value the airline at over $350 million. The funds will be used for expansion and payments for the airline, with new shares issued by diluting the shareholding of the Jhunjhunwala family and Vinay Dube, who together own 65% of Akasa Air.
The proposed investment is approximately $125 million (over ₹1,000 crore), aimed at supporting the airline’s expansion and financing pre-delivery aircraft payments.
Additionally, Akasa Air is reportedly seeking additional funding of up to $400 million to increase its value from $650 million to $1 billion.
Akasa Air is backed by Rakesh Jhunjhunwala, who co-founded the company and owns 40% of it. Additionally, the former President of IndiGo, Aditya Ghosh, holds a 10% stake in Akasa Air. The Jhunjhunwala family currently holds the largest stake in the airline, with 40%, and will remain the largest shareholder even after the new investment by Premji Invest and Claypond Capital.
Indian billionaire trader Rakesh Jhunjhunwala invested $35 million for a 40% stake in Akasa Air in July 2021. Aditya Ghosh, former President of IndiGo, owns 10% of the airline, while Vinay Dube holds 31%.
The low-cost airline commenced commercial operations on 7 August 2022, flying its first service from Mumbai to Ahmedabad using a Boeing 737 MAX 8 aircraft. Akasa Air has rapidly expanded its fleet, adding 24 aircraft since its launch in August 2021—a record pace for any new airline in India.
The airline initially ordered 76 Boeing 737 Max aircraft, followed by an additional 150 orders in January. Production delays and regulatory scrutiny have impacted these plans. In March, Akasa Air and Canada-based CAE Inc., signed a 15-year agreement to provide pilot training for Akasa Air's Boeing 737MAX aircraft in India.
With a delivery rate of one aircraft every 15 days, Akasa Air now boasts a fleet of 18 aircraft and has flown over 11 million passengers since its launch in August 2022.
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