IndiGo Enters Air Taxi Race, invests in Bengaluru Startup Sarla Aviation

India’s largest airline, IndiGo, has taken a step into the emerging electric air taxi sector with an equity investment in Bengaluru-based startup Sarla Aviation.

The airline has invested Rs 10 crore through its investment arm, IndiGo Ventures, in January, according to regulatory filings.

Sarla Aviation, founded in 2023, is developing a hybrid-electric eVTOL aircraft for use as a flying taxi. Its flagship model, Shunya, is intended for urban transport and is expected to launch in Bengaluru by 2028.

Shunya is designed to seat six passengers plus one pilot, while the aircraft has a cargo configuration with a payload capacity of up to 680 kilograms.

The startup had earlier raised $10 million in January 2025 in a funding round led by Accel, with participation from angel investors including Binny Bansal, Nikhil Kamath and Sriharsha Majety.

Globally, airlines have increasingly backed eVTOL companies. Joby Aviation counts Delta Air Lines and Toyota Motor Corporation among its investors, while Archer Aviation has secured support from United Airlines.

Sarla Aviation has raised a total of $13.4 million across five funding rounds so far. It is among several Indian startups, including The ePlane Company and BluJ Aerospace competing to establish a foothold in the nascent air taxi market.