In September 2023, IndiGo announced that the airline would enter venture capital financing. From there, they went quiet about the project, but having worked in asset management for a long time, I can tell you that it takes time to get through these things. Beyond that, the Indian capital markets regulators do take their time vetting and giving their stamp of approval.

IndiGo is now ready and live to invest in aviation and travel tech startups.

IndiGo Ventures, IndiGo’s corporate venture capital fund, has received the Alternative Investment Fund approval from the Securities and Exchange Board of India (SEBI). 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 invest in consumer startups that touch on the passenger journey, such as travel, lifestyle, hospitality, transportation, etc.

The Fund has commenced pre-investment activities, including engaging with select start-ups and their founders. The Fund is expected to start investments by the end of FY 2024-25.

IndiGo joins the list of storied airlines and travel firms with venture-investing arms.

IndiGo is undoubtedly not the first airline to go down the road of capital investing. United, JetBlue, KLM, Qantas, International Airline Group, Japan Airlines, El Al, ANA and the Lufthansa Group run VC arms. Other travel firms, such as Amadeus, run their funds as well.

Many times, such innovative investments help the airlines to create a pipeline of firms that could help find an “edge” over their competing carriers, and these could then either be made exclusive to the airline or monetised, and the airline gets a part of the growth story.

Bottomline

IndiGo Ventures, the venture capital arm of IndiGo, has set up shop and intends to make early-stage investments in airline-related and assorted firms. The firm intends to make their first investment within the next few months.

What do you think of IndiGo’s approach to adding venture investing to the list of things it does?

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