Akasa Air has obtained a ₹740 crore working capital loan from IndusInd Bank under the Emergency Credit Line Guarantee Scheme, supporting its ongoing growth as it celebrates four years in operation and plans an IPO.
Akasa Air has secured a ₹740 crore working capital loan from IndusInd Bank under the Emergency Credit Line Guarantee Scheme, giving the young carrier extra liquidity as it continues to expand its operations. The Mumbai-based airline is the second carrier after SpiceJet to tap the government-backed programme, which was approved by the Union Cabinet in May to ease pressure on airlines facing tight cash conditions.
The airline said the funds would be used for routine business needs and described the scheme as timely support for scheduled Indian carriers. Akasa’s latest financing comes as the airline marks four years in business on Friday, with a fleet of 40 Boeing aircraft serving 36 destinations and more deliveries expected as it widens its network.
Vinay Dube, Akasa Air’s founder and chief executive, said the carrier remains well capitalised even as it navigates a difficult operating environment. In comments reported by The Hindu BusinessLine, he said volatility in fuel prices and foreign exchange rates, driven in part by the war, made it too early to judge full-year profitability. He added that the company still intends to pursue an initial public offering within the next 2 to 4 years.
The ECLGS loan adds to a broader push by Akasa to strengthen its balance sheet as it scales up. The New Indian Express reported in July that the airline had been in talks to raise about ₹800 crore through equity and at least ₹250 crore in debt under the scheme, while other reports have said its borrowing headroom has risen to ₹3,950 crore from ₹1,200 crore. Akasa has also drawn investment from backers including Premji Invest, Claypond Capital and funds managed by 360 ONE Asset, underlining the carrier’s effort to fund growth while managing fuel and currency risks.
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