Akasa Air raises $47.3M from existing investors as losses widen
What's the deal? Akasa Air has raised US$61.1M (around $47.3 million) by issuing compulsory convertible preference shares to existing backers, led by Rekha Jhunjhunwala, to fund operations and expansion. Shareholders approved the sale at an extraordinary general meeting on September 30.
Who's in? The shares went to 29 individuals and entities, including the Jhunjhunwala family and the family offices of Azim Premji and Ranjan Pai. Rekha Rakesh JhunjhunwalaDealroom has a profile for this one. Try Dealroom → invested US$29.5M — nearly half the total — while Azim Premji's family office put in US$12.8M.
Why now? It is Akasa's second raise since last August and follows a roughly $125 million strategic round completed in 2025. The infusion comes amid slow traffic growth, a weak rupee, and crude oil prices above $100 a barrel.
What's the endgame? The airline has inducted 14 Boeing 737 Max jets in 2026, lifting its fleet to 45, with more deliveries due. It has grown its domestic market share past 5.5%, but did not detail how it would spend the new capital.
By the numbers: Revenue rose 35% in FY26, but net loss widened 37% to US$368.8M, driven by the weak rupee. The company described itself as "a well-capitalised airline with a clear long-term growth strategy."
The signal: At about $47 million, the round ranks in the top 10% of all-time convertible deals in Indian transportation. But repeat fundraising from existing shareholders underscores how much Akasa's expansion still depends on insider backing while it works toward profitability — and the sale alone does not resolve its cost and earnings challenge.
Read more: thehindubusinessline.com
Image credit: Marvin Mutz
