Akasa Air raises funds from Azim Premji, Ranjan Pai family offices
The investment deals will fuel Akasa Air's path to becoming one of the top 30 airlines in the world by the end of this decade.
Domestic carrier Akasa Air on Thursday said it has entered into a pact with a consortium of marquee investors, including Tech tycoon Azim Premji's global investment arm, and the investment office of Manipal Group Chief Ranjan Pai, for a fresh capital infusion fuel the airline's ambitious growth plans.
Besides, the Jhunjhunwala family, which currently holds a 45.97% stake in the airline, has also "committed" to an additional funding, Akasa Air said in a statement.
Akasa Chief Executive Officer Vinay Dube, who is also one of the founders of the entity with 16.13% stake, had late last month told PTI in an interaction that the airline "has been and will continue to be a well-capitalized company".
He was responding to a question about the airline's funding plans amid reports of the airline having talks with a clutch of investors including the family offices of Premji and Pai for a $120-million capital infusion.
"A consortium of India's finest investors, including Premji Invest - the global investment arm of Azim Premji, Claypond Capital, the investment office of Dr Ranjan Pai and funds managed by 360 ONE Asset, a leading asset management firm, has signed investment agreements with Akasa Air," the airline said without disclosing the quantum of funds.
The investment deals, which are subject to regulatory approvals, will fuel Akasa Air's path to becoming one of the top 30 airlines in the world by the end of this decade, enabling the airline to further its unique contribution to India's extraordinary growth as an aviation hub, it 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," said Dube.
He added that these "investment agreements" will empower Akasa to build on the future and transform the way customers experience air travel.
These investments will be utilised to power Akasa Air's ambitious growth plans and further strengthen the airline's commitment to enhancing customer experience through continued investments in safety, reliability and technology as well as driving international expansion, it 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.
Besides Jhunjunwala family and Dube, his brothers Sanjay and Niraj have 7.59 per cent shares each in the carrier while Madhav Bhatkuly owns 9.41% of the airline and PAR Capital Ventures Llc 6.37%.
The existing shareholder interest will come down after coming on board the new shareholders.
Edited by Megha Reddy