India’s Akasa Air Secures Regulatory Approval for New Investor Backing to Fuel Expansion
Akasa Air, one of India’s fastest-growing low-cost carriers, has received a major boost in its expansion plans after the Competition Commission of India (CCI) approved fresh investments in its parent company, SNV Aviation Private Limited. The green light paves the way for capital infusion from Premji Invest, the Pai family office (Claypond Capital), and 360 ONE Asset, three significant players in India’s private equity and venture capital landscape.
Announced on April 15, 2025, the CCI’s approval allows PI Opportunities Fund (PIOF), Claypond Capital Partners, and 360 ONE Private Equity Fund to acquire shareholdings in SNV Aviation. These entities represent high-profile investment interests: PIOF is owned by Premji Invest, the investment arm of tech billionaire Azim Premji; Claypond Capital is affiliated with the Manipal Group’s Ranjan Pai; and 360 ONE Private Equity Fund is managed by wealth management firm 360 ONE Asset.
Strategic Investment to Power Growth
This regulatory approval comes after Akasa Air’s earlier announcement that it was in talks to raise a total of INR 84 billion (USD 983 million) through a mix of equity and debt financing over the next three years. The capital raise is part of a strategic initiative to significantly expand the airline’s fleet and international footprint.
In August 2024, Akasa confirmed that a consortium comprising Premji Invest and Claypond Capital was in advanced talks to inject USD 125 million into the carrier as part of the broader funding plan. The approval from the CCI now sets the stage for the airline to move forward with these critical investments.
From Startup to Sky Giant
Launched in August 2022, Akasa Air has quickly emerged as a key player in India’s competitive aviation market. According to data from ch-aviation, the airline currently operates a fleet of 27 Boeing 737 aircraft, including twenty-three B737-8s and four B737-8-200s. Akasa serves 27 destinations across five countries, reflecting its rapid domestic and regional expansion.
However, Akasa’s growth momentum has been impacted by ongoing aircraft delivery delays at Boeing, leading to a temporary surplus of pilots and underutilization of existing crew due to a shortage of available aircraft.
Big Orders, Bigger Ambitions
Despite short-term hurdles, Akasa Air continues to bet big on the future. The carrier has placed firm orders for 100 more B737-8-200s and an additional ninety-nine B737-10s, underlining its vision to scale operations both within India and internationally.
With regulatory approval now secured and funding from reputable investors on the horizon, Akasa Air is well-positioned to push forward with its long-term strategy to become a leading low-cost carrier in Asia.
This investment milestone not only strengthens the airline’s financial footing but also reflects strong investor confidence in India’s fast-growing aviation market and Akasa’s strategic direction.
Related News: https://suspicious-zhukovsky.67-21-117-18.plesk.page/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com