India’s largest airline, IndiGo, is making an early move into the future of urban transport. The airline has acquired a Rs 10 crore equity stake in Sarla Aviation, a young aerospace startup building electric air taxis, marking its formal entry into the fast-evolving urban air mobility space.

The investment, routed through IndiGo Ventures in January, reflects a growing interest among global aviation players in short-distance, intra-city flying solutions that could eventually complement traditional air travel.

Founded in 2023, Sarla Aviation is working on electric vertical take-off and landing (eVTOL) aircraft, machines designed to take off and land like helicopters but operate more like quiet, electric planes. Its flagship aircraft, Shunya, is being built specifically for urban commuting and is expected to be deployed in Bengaluru by 2028.

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The aircraft is designed to carry up to six passengers, excluding the pilot, with a total payload capacity of around 680 kilograms. Instead of relying on entirely new infrastructure, Sarla plans to operate these air taxis using existing helipads located at hotels, hospitals and tech parks, an approach that could help reduce the time and cost required to scale operations in dense cities.

IndiGo’s move comes after an earlier attempt to collaborate with US-based Archer Aviation did not progress due to delays in timelines. The fresh investment suggests the airline continues to see long-term potential in the air taxi segment, even as the industry globally is still navigating regulatory, technological and commercial challenges.

Sarla Aviation has already attracted strong investor interest. In January last year, the startup raised $10 million in a funding round led by Accel, with participation from prominent entrepreneurs including Binny Bansal, Nikhil Kamath and Sriharsha Majety. The backing has positioned it among a handful of Indian startups attempting to build viable solutions in a space still dominated by global players.

Internationally, the sector has seen similar strategic alignments. Companies like Joby Aviation and Archer Aviation have secured backing from major airlines and industrial groups, underlining a broader shift in how the aviation industry is preparing for the next phase of mobility.

While the timeline for widespread adoption of air taxis remains uncertain, IndiGo’s investment signals a clear intent: the airline is not just watching the future of aviation unfold, it wants to be part of shaping it.

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