Akasa Air completes fundraising, Premji Invest joins Jhunjhunwalas

Akasa Air completes $125 million fundraising, welcoming Premji Invest, 360 ONE Asset, and Claypond Capital, alongside the Jhunjhunwala family, to support its expansion and long-term growth

Budget airline Akasa Air announced on Tuesday the completion of its strategic investment transactions, initially unveiled in February this year, following the receipt of all necessary regulatory approvals. The funding round brings Premji Invest, 360 ONE Asset, and Claypond Capital onboard, along with additional capital from the Jhunjhunwala family, to support the airline’s expansion and long-term growth plans.

 

The transaction, valued at approximately $125 million, will allow Akasa to invest in expanding operations, enhancing customer experience, and bolstering safety, reliability, and technology. The airline has set a target to become one of the world’s top 30 carriers by 2030.

   

The new investors include Premji Invest, the investment arm of Azim Premji, whose returns support the Azim Premji Foundation; funds managed by 360 ONE Asset, a leading wealth and asset management firm; and Claypond Capital, the investment office of Ranjan Pai, chairman of the Manipal Group. The Jhunjhunwala family, already a key shareholder, has also infused additional capital.

 

The funding comes amid widening losses for Akasa. The airline’s standalone net loss rose 18.7% year-on-year to about Rs 1,983 crore in FY25, driven by higher costs in areas such as employee wages, maintenance, airport charges, and forex fluctuations. In FY24, the net loss more than doubled to Rs 1,670 crore, up from Rs 744 crore in the previous year.

 

Vinay Dube, founder and CEO of Akasa Air, commented, “The fresh capital will allow us to scale sustainably while keeping customers and employees at the centre of our operations. We are grateful to the Jhunjhunwala family for their continued belief in the airline and thankful to the Ministry of Civil Aviation for its support.”

 

On the FY25 losses, an Akasa spokesperson had commented in June that the airline remains "net cash positive" at the operating level and that the losses align with its business plan for the foundational years. “Running an airline is a business of fixed costs and requires scale before we turn profitable. This is neither surprising nor unanticipated,” the spokesperson added.

 

Akasa has also faced leadership churn. In June, the airline confirmed the exit of Ajit Bhagchandani, Vice President (In-Flight Services), citing personal reasons. As reported by Business Standard earlier, three other senior executives had also resigned or were serving notice.

 

The airline’s growth has been hindered by delays in aircraft deliveries from Boeing. Of the 226 planes it has ordered, only 30 have been inducted so far. While 24 of these were added between June 2022 and June 2024, just six have arrived since. The delays have left a section of pilots underutilised, pushing up costs.

 

Despite these challenges, Akasa announced that it has achieved “robust operational and financial momentum” in its three years of operations, having flown over 20 million passengers with a fleet of 30 aircraft. The airline has expanded into Southeast Asia, with Phuket as its first international route, and plans further growth across the SAARC and ASEAN markets.

 

Manoj Jaiswal, Partner at Premji Invest, said, “We are excited to partner with Akasa, India’s fastest-growing airline, in its next phase of growth. We believe the Indian aviation industry has significant growth potential, both domestically and internationally. Team Akasa is brilliantly positioned to execute on this opportunity.”

 

Umesh Agrawal, Fund Manager at 360 ONE Asset, added, “We are elated to partner with Akasa Air at a time when India’s aviation sector is poised for tremendous growth. This investment will support Akasa’s mission to build a customer-centric airline.”

 

Shyam Powar, Chief Investment Officer at Claypond Capital, remarked, “What excites us is not just the scale of the opportunity, but the passion and purpose with which the team is building this airline. We are proud to support Akasa and look forward to helping them build a world-class airline from India.”