Akasa Air in Talks to Raise ~ $125 Mn from Consortium that includes Premji Invest, Family Offices of Azim Premji and Ranjan Pai

Premji Invest, a venture capital firm led by Wipro's Azim Premji, and Claypond Capital, the family offices of Azim Premji again, and Manipal Group's Ranjan Pai, respectively, are in discussions to invest approximately $125 million for a significant minority stake in Akasa Air, said a report by Economic Times. 

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. 

Akasa Air Inks 15-Yr Agreement with CAE Inc. to Provide Pilot Training for Boeing 737MAX Aircraft

Akasa Air and CAE Inc., have announced that they signed a 15-year agreement to provide pilot training for Akasa Air's Boeing 737MAX aircraft in India. The agreement gives Akasa Air access to CAE's training facilities, which will help the airline build a team of experienced pilots.

Notably, Akasa Air has placed an order for 226 Boeing 737MAX aircrafts. The airline is was expected to receive 150 737 MAX – MAX 10s and MAX8-200s at WINGS India 2024, and two more 737 MAX8 aircraft in January 2024. Over the course of eight years, Akasa Air is expected to receive 204 more 737MAX aircraft.

CAE Inc. (formerly Canadian Aviation Electronics) is a Canadian manufacturer of simulation technologies, modelling technologies and training services to airlines, aircraft manufacturers, healthcare specialists, and defence customers.

CAE has trained Akasa Air pilots since the start of the airline’s operations in 2022, providing world-class infrastructure and a rigorous and immersive simulation training curriculum that enables them to meet superior levels of proficiency.

Commenting on the announcement, Vinay Dube, Founder and CEO, Akasa Air said, “We are pleased to further cement our partnership with CAE, one of the world’s leading pilot training technology providers. Akasa Air is built on a strong foundation of reliability and practices the highest standards of safety and precision in global aviation. Our approach to learning and development is rooted in developing a future-ready workforce to gain a competitive advantage in the dynamic aviation landscape. As we receive a substantial influx of aircraft in the coming decade, this partnership will provide us access to the world’s best training facilities for the next 15 years and will help us build a team of highly experienced and skilled pilots, as we continue our commitment of becoming one of the world’s safest airlines.”

“This long-term agreement is a testament to the quality of the pilot training we deliver and the strong relationship we have built with Akasa in a relatively short time,” said Nick Leontidis, CAE’s Group President, Civil Aviation. “In the fast-growing Indian aviation sector, CAE has the infrastructure and resources to support the expansion of airline partners, like Akasa Air, in the region.”

CAE has a long and significant presence in India, operating 13 state-of-the-art simulators in three commercial aviation training centres and delivering essential pilot training and training services to airlines in India. Last year, CAE became a Boeing Authorized Training Provider for Boeing’s Competency-Based Training and Assessment (CBTA) curriculum in India.

CAE shares Akasa Air’s commitment to sustainable operations. In 2020, CAE became the first carbon-neutral Canadian aerospace company, reducing its emissions and investing in projects that offset residual annual carbon emissions for its global operations, including in India.

Akasa Air is a low-cost airline in India that was founded in December 2021 by Vinay Dube, Aditya Ghosh, and Rakesh Jhunjhunwala.

The airline's headquarters are in Mumbai, and it has 20 destinations and 40 routes in India. Akasa Air's first international flight will be from Mumbai to Doha on March 28, 2024, making it the first Indian carrier to fly abroad in 19 months.