After posting a record profit in Q1, 2023, IndiGo is spreading its wings into Venture Capital to make early-stage investments in aviation startups.
The announcement was made during IndiGo's earnings call with investors on August 2.
The airline has sought regulatory approvals and is yet to narrow down on the size and scale of this business but it the airline will start with an initial amount of INR 70 bn
"We are planning on launching our venture capital arm which will invest in early-stage companies operating in aviation & consumer focussed & allied sectors such as travel, lifestyle, hospitality & transportation," Gaurav Negi, chief financial officer, IndiGo's told analysts during the earnings call.
The company's board has given the nod for the incorporation of a Limited Liability Partnership (LLP) dedicated to making strategic investments in early-stage companies within the aviation, consumer, and allied sectors. This decision marks a significant step forward for InterGlobe Aviation, as it seeks to diversify its portfolio and tap into the potential of innovative startups.
By leveraging its vast experience and robust network within the aviation industry, InterGlobe seeks to fuel the growth of these startups while exploring new business opportunities beyond its core airline operations.
The LLP will focus on "investment in startups operating in aviation, consumer, and allied sectors such as travel & lifestyle, hospitality, and transportation," according to a regulatory filing.
By exploring its reach beyond aviation and consumer sectors IndiGo is planning to broaden its reach and identify opportunities in sectors closely related to its operations.
To ensure successful investments, InterGlobe Aviation's venture capital arm will adopt a rigorous selection process. A team of experts will thoroughly evaluate startups based on factors such as their business model, market potential, scalability, and alignment with the company's vision.