Electric Aircraft Startup Seeks Significant Investment
The ePlane Company, a burgeoning player in the aviation sector, is actively pursuing a fundraising round estimated between $40 million and $50 million.
This initiative will amalgamate equity, convertible financial instruments, and anticipated governmental support for research, development, and innovation (RDI), as disclosed by several knowledgeable sources.
Speciale Invest, a notable deeptech investor, has emerged as a potential co-leader in this private funding endeavor, collaborating with a consortium of other investors.
Headquartered in Chennai and incubated within the illustrious walls of IIT Madras, ePlane has received preliminary board approval to finalize a convertible tranche worth approximately $15 million to $20 million, which it aims to conclude by next month.
Future Capital Infusion
This fundraising effort is expected to be succeeded by a capital infusion aimed at bolstering growth, contingent upon the outcome of its application to the Rs 1 lakh crore RDI Fund. Initiated in November of last year, the RDI Fund has yet to fully activate, with only around Rs 300 crore allocated to initial fund managers thus far.
Impending Prototype Launch
Simultaneously, the company is on the cusp of revealing a full-scale prototype of its electric aircraft within this calendar year. Vishesh Rajaram, managing partner at Speciale Invest, confirmed the firm’s involvement in co-leading this fundraising initiative.
“The structure of this fundraising is astutely conceived. Integrating equity instruments with the prospective RDI Fund application exemplifies the evolving strategies employed by frontier deeptech enterprises in India when orchestrating capital formation,” he articulated in a communication to ET.
Funding Strategy Insights
While the venture fund refrained from commenting on the specific amounts being sought through various instruments, Rajaram clarified, “Should the RDI component gain approval, it would complement our private capital raise and would not hinder our investment assessments; we will evaluate the enterprise based solely on its merits.”
One informed source emphasized, “The RDI Fund represents a novel funding approach. The company must navigate the timeline and potential financial yield associated with it.”
Previous Fundraising and Future Endeavors
In a prior fundraising round in November 2024, ePlane successfully raised $14 million, co-led by Speciale Invest and Antares Ventures, with participation from entities like Micelio Mobility and Naval Ravikant. This round pegged the company’s valuation at approximately $34.2 million according to Tracxn.
The startup is currently developing distinct models of its e200x electric air taxis tailored for both ground and aerial testing.
Recently, the company announced intentions to utilize Nvidia Omniverse to create digital replicas of the aircraft, thereby facilitating the engineering and simulation of intricate aerodynamic dynamics prior to real-world operations.
Compliance and Commercialization Plans
Certification will follow a methodical process, encompassing approvals at the aircraft level and subsequent safety validations through flight trials, particularly focused on operations involving passengers.
Under the guidance of IIT Madras professor Satya Chakravarthy, the startup envisions a phased commercialization strategy. It will commence with air ambulance and cargo services, subsequently branching out into passenger transport, contingent upon receiving regulatory clearance.
Industry Context
Industry experts believe that India’s nascent eVTOL market is poised to radically transform urban mobility dynamics by introducing aircraft capable of vertical takeoff and landing, thus providing commuters an avenue to circumvent traffic delays, especially during emergencies.
Nevertheless, the economic feasibility of such transportation modes remains largely untested within the Indian context.
Competitors in the Emerging Landscape
Other players contending for a share of this developing market include Archer Aviation, Sarla Aviation, BluJ Aerospace, and JetSetGo.
Early last year, Sarla Aviation raised $10 million in a funding round helmed by Accel, receiving backing from prominent entrepreneurs such as Flipkart cofounder Binny Bansal and Zerodha cofounder Nikhil Kamath.
From California, Archer Innovation, in collaboration with InterGlobe Enterprises—the parent company of IndiGo—had earlier revealed ambitions to initiate commercial operations in India come 2026.
Source link: M.economictimes.com.
