Indigo’s VC Arm Marks First Close Of Maiden Fund At INR 450 Cr

Eight months after getting SEBI nod to set up an alternative investment firm (AIF), aviation major Indigo’s VC arm Indigo Ventures has announced the first close of its maiden fund at INR 450 Cr. 

The VC arm of the airline is eyeing raising INR 600 Cr for its first AIF. It will invest in early-stage startups in aviation and allied sectors. 

In a statement, Indigo Ventures said it will target startups in pre-Series A to Series B stages, with an emphasis on long-term strategic alignment.  

Along with the first close, Indigo Ventures announced its first startup investment in General Catalyst-backed Jeh Aerospace. However, it didn’t disclose the size of the deal. 

Founded in 2022 by ex-Tata executives Venkatesh Mudragalla and Vishal Sanghavi, Jeh develops aerostructures and aero-engine components, build-to-print assemblies with expertise in high-precision drilling, cold working processes and wire harness assembly.

Indigo Ventures said that Jeh has delivered 1 Lakh flight-critical aeroengine components and precision tools meeting AS9100 standards since its inception, and secured $100 Mn in long-term contracts with global aerospace companies.

As per Jeh cofounder and CEO Sanghavi, the fresh investment will allow the startup to scale production capacity and ensure on-time delivery of high-precision components.

Prior to raising funds from Indigo, the startup raised $2.8 Mn from investors like General Catalyst, Pratyush Kumar and Dwarakanath Srinivasan. Jeh reported a net loss of INR 25 Lakh in FY24 on an operating revenue of INR 88 Lakh, as per data sourced from Tofler. 

“Through IndiGo Ventures, we are excited to partner with Jeh Aerospace, a homegrown brand that shares our vision and spirit of strengthening the Indian aviation ecosystem. By combining our technical expertise and global footprint, this partnership will propel use of next-generation technology in the aerospace and aviation sector,” Indigo CEO Pieter Elbers said. 

The airline officially unveiled its VC arm in December 2024. Back then, it said that the fund had already commenced pre-investment activities and was engaged with select startups. It was expecting to start making investments by the end of FY25. 

Indigo’s chief digital and information officer Neetan Chopra serves as the founder, director and investment committee member of the VC firm, while investment industry veteran Ankit Sharma serves as its managing partner. Indigo Ventures’ investment committee also features CEO Elbers, chairman Vikram Singh Mehta, managing director Rahul Bhatia, among others.