NEW DELHI / BENGALURU — IndiGo, India’s largest airline, has officially entered the race for the skies of tomorrow by acquiring a strategic equity stake in Bengaluru-based startup Sarla Aviation. The investment, valued at ₹10 crore, was executed through the airline's venture capital arm, IndiGo Ventures, signaling a major pivot toward the emerging Electric Vertical Take-off and Landing (eVTOL) market.
The Investment Details
According to recent filings with the Registrar of Companies (RoC), the investment was finalized in early 2026. This move follows Sarla Aviation's successful $10 million funding round in 2025, which was led by Accel and featured prominent angel investors including Binny Bansal (Flipkart co-founder), Nikhil Kamath (Zerodha co-founder), and Sriharsha Majety (Swiggy CEO). IndiGo's entry at the Accel-round valuation underscores its confidence in the startup's domestic technology.
Why Sarla Aviation?
Founded in 2023 by engineers Adrian Schmidt, Rakesh Gaonkar, and Shivam Chauhan, Sarla Aviation is developing "Shunya," an fully electric aircraft designed specifically for congested urban environments.
Key specifications of the Shunya aircraft include:
Capacity: 6 passengers plus 1 pilot.
Payload: Up to 680 kg (the highest in its class).
Speed: Up to 250 km/h.
Infrastructure: Designed to operate using existing helipads at tech parks, hotels, and hospitals.
Strategic Shift for IndiGo
The move marks a departure from IndiGo’s previous strategy. The airline’s parent company, InterGlobe Enterprises, had earlier signed a non-binding agreement with U.S.-based Archer Aviation to launch air taxis by 2026. However, reports suggest that partnership fell through after Archer was unable to meet committed delivery timelines.
“IndiGo didn't lose appetite for the space, just the partner,” noted an industry source. By backing a domestic player like Sarla, IndiGo is betting on a startup that is tailoring its aircraft for Indian operational conditions and regulatory frameworks.
The Road to 2028
Sarla Aviation has already begun ground testing of its half-scale demonstrator, the SYL-X1, at its Bengaluru facility. The startup aims to launch commercial operations in Bengaluru by 2028, with plans to expand to Delhi, Mumbai, and Pune shortly thereafter.
The company has also signed a memorandum of understanding (MoU) with Cochin International Airport (CIAL) to explore "vertiport" infrastructure, as well as agreements with medical providers like Aster Medcity to develop air ambulance configurations.
The Competitive Landscape
IndiGo joins a global trend of major carriers backing eVTOL tech:
Delta Air Lines is a primary backer of Joby Aviation.
United Airlines has invested heavily in Archer Aviation.
In India: Sarla faces competition from other domestic startups like ePlane, BluJ Aerospace, and JetSetGo.
As urban congestion in Indian metros reaches critical levels, the partnership between India’s most dominant airline and a home-grown eVTOL pioneer could turn the "flying taxi" from a sci-fi dream into a commercial reality within the next three years.