IndiGo invests $1.2 million in hybrid-electric aircraft developer Sarla Aviation

IndiGo Ventures, the venture capital arm of IndiGo, has invested $1.2 million in Bangalore-based Sarla Aviation, a start-up developing hybrid-electric vertical take-off and landing aircraft for the Indian market.

According to aviation publication AIN, the funding is expected to support Sarla Aviation’s efforts to bring its six-seat Shunya aircraft into commercial service by the early 2030s.

The investment highlights growing interest in advanced air mobility technologies in India, even as commercial deployment of electric and hybrid-electric aircraft remains at an early stage globally.

IndiGo distances itself from direct eVTOL operations

While confirming the investment last month, an IndiGo spokesperson clarified that the airline group is not directly involved in Sarla Aviation’s plans to launch electric vertical take-off and landing, or eVTOL, air taxi services.

“This should not be seen as an endorsement of their eVTOL capabilities,” the spokesperson said, according to AIN.

Even so, Sarla Aviation executives said the investment strengthens the company’s standing within the aviation ecosystem.

Adrian Schmidt, co-founder and chief executive of Sarla Aviation, said IndiGo’s backing marked “a turning point” for the company and for urban mobility development in India.

Shunya aircraft programme moves into testing phase

Sarla Aviation is developing the Shunya as a hybrid-electric aircraft designed for short regional and urban air mobility operations.

The company has already begun early-stage flight demonstrations through a half-scale technology demonstrator known as the SYL-X1, which is being tested at an airfield near Bangalore.

Key details of the Shunya programme include:

• The aircraft is designed to carry six passengers
• Sarla Aviation aims for commercial entry into service by the early 2030s
• The SYL-X1 demonstrator has a wingspan of 7.5 metres
• Full-scale prototype development is expected to begin in 2027
• The Shunya is projected to have a maximum range of around 800 kilometres
• The aircraft could reach speeds of up to 136 knots
• In all-electric mode, the aircraft is expected to cover sectors of up to 82 nautical miles

The company said the demonstrator programme is helping validate flight systems and operational concepts before work begins on a larger prototype aircraft.

India’s air mobility ecosystem begins to take shape

The investment also comes amid broader activity in India’s advanced air mobility sector.

In November 2023, InterGlobe Enterprises, the parent group of IndiGo, signed an agreement with US-based Archer Aviation aimed at deploying the manufacturer’s Midnight eVTOL aircraft in India. At the time, the companies said commercial air taxi operations could begin as early as 2026.

Separately, Sarla Aviation said India’s Directorate General of Civil Aviation is working on an advanced air mobility sandbox focused on regulatory areas including vertiport infrastructure and pilot licensing.

The start-up has also signed memorandums of understanding with airports in Bangalore, Kochi and Hyderabad, while holding discussions with Australian vertiport developer Skyportz.

Legacy and long-term ambitions

Sarla Aviation was named after Sarla Thukral, India’s first female pilot. In 1936, at the age of 21, Thukral received her pilot’s licence and completed a solo flight in a Gypsy Moth aircraft.

The company’s latest funding round underscores rising investor attention on alternative aviation technologies in India, although large-scale commercial deployment will depend heavily on certification timelines, infrastructure readiness and regulatory approvals.

For IndiGo, the investment signals continued interest in future aviation technologies without committing directly to operating eVTOL services. For Sarla Aviation, the funding provides additional credibility as it advances development of the Shunya aircraft programme.