India's largest domestic airline IndiGo’s corporate venture capital fund, IndiGo Ventures, has received the alternative investment fund approval from the Securities and Exchange Board of India (SEBI), it announced on October 15.
"The fund will invest in startups that have the potential to redefine the future of aviation and beyond, seeking pre–Series A, Series A, and Series B funding. These include startups working on cutting-edge technologies and solutions within the aviation sector. The fund will also look to invest in consumer startups that have a touchpoint in the passenger journey, such as travel, lifestyle, hospitality, transportation, etc," said IndiGo in a statement.
It has already commenced pre-investment activities, including engaging with select start-ups and their founders. GoIndiGoVentures.com has been setup as the portal to access further information about the fund, including its investment thesis, the core valuation proposition for founders and details on governing entities and their membership, IndiGo added.
The corporate venture capital fund is expected to start investments by the end of FY25.
Speaking about the development, Neetan Chopra, Chief Digital & Information Officer, IndiGo, said, “As IndiGo embarks on this new journey with IndiGo Ventures, we are committed to fostering innovation, giving wings to aspirations, in aviation and beyond. The startups will benefit from IndiGo’s extensive technical expertise and diverse geographical imprint, leading to the development of new products and services.”
The board of InterGlobe Aviation Ltd, which operates India’s largest airline IndiGo, had on September 4, approved the creation of the financial services arm with an initial investment of Rs 30 crore.
Air India became the first major airline to set up a leasing unit at IFSC Gift City in Gujarat.
Last year, the government exempted aircraft leasing companies from paying corporate and withholding tax on leasing transactions in a bid to promote aircraft leasing from GIFT City.
The exemptions are part of the government’s efforts to transform the country into a global aircraft leasing hub to rival centres such as Dublin or Singapore by incentivising foreign lessors to commence operations from GIFT City.
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