Akasa Air has brought marquee investors on board, in an effort to infuse fresh capital into the airline, including names Premji Invest, Dr Ranjan Pai, and 360 ONE Asset, a statement by the airline said on February 6. The Jhunjhunwala family too has also committed additional capital infusion into the airline.
The consortium of investors includes the investment arm of Azim Premji, Claypond Capital – the investment office of Dr Ranjan Pai, as well as funds managed by 360 ONE Asset.
The airlines said that the funds raised will fuel its path to becoming one of the top 30 airlines in the world by the end of this decade.
"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 cutting-edge technology," the airline said in a statement on February 6, adding that the investments "will also drive international expansion and enable Akasa to solidify its promise to its employees by fostering a high-quality work environment for top talent."
While Akasa Air did not quantify the value of investment the new round of fund raising will bring into the airline, media reports suggest that the fundraising is valued at $ 130-140 million at a valuation of $ 350 million for the airline.
Last year Moneycontrol had reported that Akasa Air planning to raise as much as $1 billion through debt and equity over the next three years to expand its fleet size and boost market share.
The Jhunjhunwala family and Akasa’s founder and CEO Vinay Dube collectively own over 65 percent of the airline, with the family currently holding 40 percent, making them the largest shareholder.
Akasa Air's plans for rapid expansion have faced disruptions in 2024 due to supply chain issues, challenges at aircraft manufacturer Boeing, and increased competition for aircraft deliveries. The airline had initially planned to have a fleet of 28 aircraft by March 2024 but had taken delivery of only 24. The airline took delivery of its 27th aircraft in January 2025.
The carrier placed an initial order of 76 Boeing 737 Max jetliners at the time of its launch in 2022. The airline then also ordered 150 737 MAX narrow-body planes in January 2024, including the MAX 10 and MAX 8-200 versions.
Sources have said that Akasa Air aims to fly approximately 20 million domestic passengers annually by the end of 2027, capturing 12-15 percent of the domestic market, while also catering to nearly 1.5 million international passengers annually. The airline is working towards increasing its fleet size to about 74 aircraft by the end of 2027.
They added that Akasa Air's aircraft leasing costs are expected to rise from $80-90 million per annum at present (for 24 aircraft) to around $250-300 million per year for 74 aircraft, over the next three years.
The airline expects to receive deliveries of 202 aircraft over eight years, giving it a steady stream of new aircraft to support its domestic and international expansion plans.
Financial performance
In FY23, its first year of operations, Akasa’s parent, SNV Aviation, reported a net loss of Rs 744 crore and an operating loss of Rs 602.84 crore. The airline generated operating revenues of Rs 777.85 crore against operating expenses of about Rs 1,380 crore.
The budget airline posted a net loss of Rs 1,670 crore in FY24 despite revenue growing more than fourfold to Rs3,069.58 crore in FY24. It was the first full-year results for late stock market investor Rakesh Jhunjhunwala-backed SNV Aviation which started operations in August 2022 under the Akasa Air brand.
The airlines' total expenses climbed more than threefold to Rs4,814.4 crore in FY24 from Rs1,522 crore in FY23. Similarly, Akasa Air saw its interest and other finance costs rise nearly threefold to Rs 406.1 crore in FY24 from Rs 141.18 crore in FY23. This was due to higher aircraft lease obligations and accounting standards.
Employee benefit costs also rose to Rs 774.9 crore in FY24 from Rs 232.4 crore as the airline hired 1,400 employees during the year to expand its workforce to 3,800 employees.
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