IndiGo Ventures secures Sebi nod for corporate venture fund

IndiGo’s venture fund: IndiGo, India’s largest domestic airline, announced on 15 October that its corporate venture capital arm, IndiGo Ventures, has received approval from the Securities and Exchange Board of India ( SEBI ) to operate as an alternative investment fund (AIF).

The fund will focus on startups aiming to revolutionise the future of aviation and related sectors. IndiGo Ventures will seek to invest in pre-Series A, Series A, and Series B rounds, particularly targeting startups developing innovative technologies within the aviation sector. Additionally, the fund will consider consumer-focused startups involved in areas such as travel, lifestyle, hospitality, and transportation, which are connected to the passenger journey.

IndiGo Ventures has already started pre-investment activities, engaging with select startups and founders. The company has also launched a dedicated portal, GoIndiGoVentures.com, where potential participants can access information on the fund’s investment thesis, valuation propositions, and details on governing entities.

The corporate venture fund is expected to begin making investments by the end of FY25. Neetan Chopra, Chief Digital & Information Officer at IndiGo, said, "IndiGo Ventures is committed to fostering innovation, supporting startups in aviation and beyond. These startups will benefit from IndiGo’s extensive technical knowledge and vast geographical presence, helping develop new products and services."

The creation of IndiGo’s financial services arm was initially approved by InterGlobe Aviation Ltd’s board on 4 September, with an initial investment of Rs 30 crore.

Meanwhile, Air India became the first major airline to establish an aircraft leasing unit at IFSC GIFT City in Gujarat. This move followed the Indian government's decision last year to exempt aircraft leasing companies from corporate and withholding tax on leasing transactions, aiming to position the country as a global aircraft leasing hub, rivalling Dublin and Singapore. The government’s policy is designed to attract foreign lessors to commence operations from GIFT City.