Whalesbook
IndiGo's investment arm has made a notable investment in Sarla Aviation, a startup developing electric flying taxis. This move into future urban air mobility comes as the airline itself navigates ongoing challenges in its core business.
Sarla Aviation's Plans
IndiGo Ventures has injected ₹10 crore into Sarla Aviation, which is building hybrid-electric eVTOL aircraft. Sarla aims to launch its 'Shunya' flying taxi in Bengaluru by 2028, targeting urban transport. The startup has raised $13.4 million so far, including a $10 million round in January 2025 led by Accel. This funding is much smaller than the billions raised by global eVTOL leaders like Joby Aviation and Archer Aviation.
IndiGo's Current Struggles
Meanwhile, IndiGo's primary airline operations are facing difficulties. The company reported a net loss of ₹26.1 billion in the second quarter of fiscal year 2026, partly due to foreign exchange losses. It also continues to deal with flight disruptions and higher operating costs.
Analyst Views on IndiGo
Despite these short-term pressures, analysts generally hold a positive long-term view for IndiGo. Consensus price targets range from ₹4,500 to ₹5,500, with some targets going as high as ₹7,300. The airline's stock was trading around ₹4,200-₹4,700 in April 2026. Key factors supporting this outlook include resolving engine issues, receiving new aircraft deliveries, and expanding international routes.
The Regulatory Landscape for Flying Taxis
The Directorate General of Civil Aviation (DGCA) is creating rules for flying taxi operations in India. This includes standards for safety certification, pilot licenses, landing sites (vertiports), and air traffic management. While some guidance is available for certification and vertiports, full operational rules are still being developed. Globally, the eVTOL market is expected to grow significantly, potentially reaching over $216 billion by 2035. However, the sector is very crowded with hundreds of programs, and a few major players hold most firm orders.
Risks for Sarla Aviation
Sarla Aviation's ambitious 2028 launch target faces significant hurdles. The pace of regulatory approval in India is a key factor. The company has raised far less capital than major international competitors, making scaling production and certification a greater challenge. IndiGo's past experience with Archer Aviation highlights these difficulties, as a planned partnership with Archer also fell through due to timeline issues. Sarla's reliance on developing infrastructure and securing necessary approvals by 2028 remains uncertain.