India’s largest airline, IndiGo, has made a strategic move into the emerging urban air mobility sector by investing in Bengaluru-based startup Sarla Aviation. The airline, through its investment arm IndiGo Ventures, has picked up an equity stake worth ₹10 crore, according to regulatory filings.
The investment marks IndiGo’s growing interest in next-generation aviation technologies, particularly electric vertical take-off and landing (eVTOL) aircraft, commonly referred to as air taxis. Sarla Aviation is currently developing an eVTOL aircraft named “Shunya,” which is designed for short-distance urban travel and aims to ease congestion in Indian cities.
This is not IndiGo’s first attempt to explore the air taxi segment. The airline had earlier entered into a non-binding partnership with US-based Archer Aviation, but the deal did not progress due to delays in execution timelines. The new investment signals a more direct and localized approach to tapping into the air taxi market in India.
“IndiGo invests ₹10 crore in Sarla Aviation to enter the air taxi segment in India.”~YourStory
Sarla Aviation’s Vision for Electric Flying Taxis:
Founded in 2023 by Adrian Schmidt, Rakesh Gaonkar, and Shivam Chauhan, Sarla Aviation is focused on building electric aircraft tailored for India’s urban needs. The company’s flagship eVTOL project aims to provide fast, affordable, and eco-friendly transport solutions within cities and nearby regions.
Sarla Aviation has already raised around $13.4 million in funding, including a $10 million Series A1 round in 2025, backed by investors such as Accel and Nikhil Kamath. The startup plans to use fresh capital, including IndiGo’s investment, for product development, operational expansion, and scaling up manufacturing capabilities.
The company is targeting a commercial launch in Bengaluru by 2028, with plans to integrate air taxis into urban transportation systems. The idea is to enable faster travel for short distances, particularly in traffic-heavy cities where road congestion remains a major challenge.
“IndiGo takes equity stake in Sarla Aviation to back electric air taxi push.”~Economic Times
IndiGo Ventures Expands Innovation Focus:
The investment has been made through IndiGo Ventures, the airline’s corporate venture capital arm launched to support startups in aviation and allied sectors. The fund focuses on early-stage companies working on technologies that can shape the future of air travel.
By investing in Sarla Aviation, IndiGo is positioning itself not just as an airline operator but as a broader player in the aviation ecosystem. The move aligns with global trends where airlines and aerospace firms are increasingly investing in sustainable aviation, automation, and advanced mobility solutions.
Experts say that such investments could help IndiGo gain early access to innovative technologies while also creating new revenue streams in the long term. The airline’s backing also adds credibility to Sarla Aviation, which is still in its early growth phase.
“India’s largest airline IndiGo backs eVTOL startup Sarla Aviation with ₹10 crore investment.”~ETtech
Air Taxis Could Transform Urban Travel in India:
The entry of major players like IndiGo into the air taxi segment highlights the growing interest in urban air mobility in India. With cities facing rising congestion and infrastructure limitations, eVTOL aircraft are being seen as a potential solution for faster and cleaner transport.
However, the sector is still at an early stage and faces multiple challenges, including regulatory approvals, infrastructure development, and cost viability. Industry analysts believe that widespread adoption of air taxis may take several years, but early investments like this could shape the future of mobility in India.
For IndiGo, the move is a calculated bet on what could become the next big shift in transportation. If successful, air taxis could redefine short-distance travel, offering a glimpse into a future where flying within cities becomes a practical reality.
“IndiGo’s investment in Sarla Aviation signals growing confidence in India’s air taxi ecosystem.”~Inc42
