New Delhi, Nov. 13 -- Regional airline Star Air, part of the Sanjay Ghodawat Group, has raised Rs 150 crore ($16.9 million) in the first tranche of its Rs 350 crore maiden funding round.
The round saw participation from a consortium of investors, including Micro Labs Ltd and Deepak Agarwal of Bikaji Foods, among others. This marks the airline's first external capital infusion since its inception.
Founded in 2019, Star Air has carried over 2 million passengers to date and claims to be among the few profitable airlines in India.
The company plans to use the fresh capital to expand its fleet and route network, strengthen its non-scheduled operator permit (NSOP) services, and scale up maintenance, repair, and overhaul (MRO) operations.
The company also plans to raise an additional Rs 200 crore by FY27 as part of its broader growth strategy.
Star Air currently operates 11 aircraft, including Embraer E175 and E145 jets. The company connects 31 destinations across India. The airline aims to grow its fleet to 50 aircraft by 2030 as part of its regional expansion plan.
The company said the funding will also support its goal of building an integrated aviation platform covering airline operations, MRO, cargo, and aviation training.
Star Air's fundraising comes at a time when India's regional aviation sector is witnessing renewed investor interest, supported by rising passenger demand and the government's ongoing regional connectivity initiatives.
Earlier this year, Akasa Air secured $125 million in a strategic investment round backed by PremjiInvest, 360 ONE Asset, and Claypond Capital. Further, LAT Aerospace, a pre-commercial regional aviation startup, raised around Rs 130.6 crore in seed funding to develop STOL (short take-off and landing) aircraft and related infrastructure.
Published by HT Digital Content Services with permission from VC Circle.