India’s Akasa Air completes additional investment round worth $125M

On August 20, 2025, Akasa Air, India’s newest low-cost airline, announced the successful completion of its strategic investment transactions plan, which was originally unveiled on February 6, 2025. Worth around $125 million, the closure of the plan follows the receipt of all requisite regulatory approvals by the Indian authorities. “The airline welcomes its new investment partners to the Akasian family, marking a significant milestone in its growth journey,” said the carrier in a statement.

The latest investors in the budget airline include Premji Invest – a leading global investment firm whose returns primarily support the work of Azim Premji Foundation, funds managed by 360 ONE Asset – a leading asset management firm and Claypond Capital – the investment office of Dr Ranjan Pai, alongside an additional capital infusion from the Jhunjhunwala family, who are already existing investors in Akasa Air.

According to the airline, “The funds will accelerate Akasa Air’s strategic roadmap to rank among the top 30 airlines in the world by the end of this decade, enabling the airline to further contribute to India’s emergence as a global aviation hub. These investments will be directed towards expanding operations, enhancing customer experience, and investing in safety, reliability, and advanced technology.”

Yatrik Sheth / ShutterstockCommenting on the successful transaction closure, Vinay Dube, Founder and CEO, Akasa Air, said, “We warmly welcome our new investors to the Akasian family and deeply appreciate their confidence in our team. Their support affirms our vision and strengthens our ability to scale sustainably while keeping customers and employees at the heart of our operations. We remain especially grateful to the Jhunjhunwala family for not just helping us take flight but for their continued belief in our dream to redefine air travel in India. We are also thankful for the support extended to us by the Ministry of Civil Aviation.”

He added, “In just three years, Akasa Air has demonstrated that rapid growth is possible with discipline, purpose, and heart. With over 20 million passengers flown and a proven record of operational excellence, we are building an airline that India can be proud of and is poised to set new standards in global aviation.”

Manoj Jaiswal, Partner – Industrials & Buyouts, Premji Invest, commented, “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 strong growth potential, domestically and beyond. Team Akasa is brilliantly positioned to execute on this opportunity.”

Akasa AirUmesh Agrawal, Fund Manager, 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 Air’s mission to build a customer-centric airline.”

Lastly, Shyam Powar, Chief Investment Officer at Claypond Capital, commented, “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 back Akasa and look forward to supporting them in their journey to build a world-class airline from India.”

Three years of growth

Earlier in August 2025, the airline celebrated the third anniversary of operating regular scheduled passenger flights. In a statement issued to mark the occasion, the company stated that the milestone “celebrates three successful years of operations, a journey illuminated by its historical growth momentum since inception.”

Akasa Air operated its first passenger flight on August 7, 2022, operated by a Boeing 737 MAX 8 between Mumbai and Ahmedabad. Over the past 36 months, Akasa Air has flown over 19 million passengers, including eight million passengers carried in the most recent 12-month period to August 2025, indicating an acceleration in the carrier’s growth rate. According to the airline, it recorded an impressive network-wide load factor of “over 87%”, which says the airline says, “reflects the strengthening trust of travellers in India and beyond.”

Aviation Aura / ShutterstockIn the three decades since its inaugural flight on 7 August 2022, Akasa has achieved robust operational and financial momentum and has carried over 20 million passengers, growing the fleet to 30 aircraft, and delivering robust load factors and punctuality. In the current financial year, the airline recorded “strong revenue growth and margin improvement driven by disciplined cost management, higher unit profitability, and strategic network expansion,” added the airline statement.

Akasa Air recently announced accelerating its international network with a foray into Southeast Asia, with Phuket (Thailand) strengthening its presence in the region and laying the groundwork for further expansion across SAARC and ASEAN markets. “This combination of operational strength, financial resilience, and targeted international growth positions Akasa to scale sustainably and advance its long-term ambition of becoming one of the top 30 airlines globally,” concluded the carrier.

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