Indigo Ventures gets SEBI approval to launch Venture Capital Fund

India’s largest airline IndiGo, on Tuesday, announced that its corporate venture capital arm, IndiGo Ventures, has received official approval from the Securities and Exchange Board of India (SEBI) to launch its Alternative Investment Fund (AIF). This development represents a major milestone in IndiGo's efforts to foster innovation in the aviation sector and beyond.

IndiGo Ventures will focus on early-stage startups seeking funding in pre-Series A, Series A, and Series B rounds, especially those developing innovative technologies and solutions within the aviation industry.

Additionally, the fund aims to invest in consumer-oriented startups that enhance the passenger journey, including areas like travel, lifestyle, hospitality, and transportation, in line with IndiGo's mission to improve the overall travel experience.

IndiGo Ventures has initiated its pre-investment activities by connecting with a select group of startups and founders. For those who are interested, additional details about the fund, its investment strategy, and governance can be accessed on their official website, GoIndiGoVentures.com. The fund anticipates starting to deploy capital by the conclusion of FY 2024-25.

The corporate venture capital fund is anticipated to begin making investments by the end of fiscal year 2025.

“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," said Neetan Chopra, Chief Digital & Information Officer, IndiGo.

The board of InterGlobe Aviation Ltd, which runs India’s largest airline, IndiGo, approved the establishment of a financial services division on September 4, with an initial investment of ₹30 crore.

Air India has become the first major airline to establish a leasing unit at IFSC Gift City in Gujarat.

Last year, the government granted an exemption to aircraft leasing companies, allowing them to avoid corporate and withholding taxes on leasing transactions to encourage aircraft leasing from GIFT City.

The exemptions are a component of the government's initiative to establish the country as a global aircraft leasing hub that can compete with centers like Dublin and Singapore, encouraging foreign lessors to begin operations in GIFT City.