IndiGo Ventures, the corporate venture capital arm of IndiGo airline, has announced the first close of its maiden fund at 450 crore rupees (US$54.2 million).

Launched in August 2024 with approval from SEBI to raise 600 crore rupees (US$70.06 million), the fund focuses on early-stage startups in aviation and related sectors.

The fund targets companies at the pre-series A to series B stages and highlights long-term strategic alignment.

As part of this initiative, IndiGo Ventures has made its first investment in Hyderabad-based Jeh Aerospace for an undisclosed amount.

The investment will assist Jeh Aerospace in scaling its digital manufacturing infrastructure.

The company was founded by industry veterans Vishal Sanghavi and Venkatesh Mudragalla, who have experience with Tata’s aerospace projects in collaboration with Boeing and Lockheed Martin.

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🔗 Source: IndiGo Ventures

🧠 Food for thought

1️⃣ India’s strategic shift toward domestic aerospace manufacturing

IndiGo’s investment in Jeh Aerospace reflects a broader national strategy to reduce dependence on global aerospace supply chains.

Despite being one of the world’s fastest-growing aviation markets, India has remained a minor player in the global aerospace manufacturing industry, creating a significant gap that companies like Jeh are now addressing 1.

The investment comes as the Indian government has been actively shifting policies since 2020 to encourage private sector participation in aerospace, resulting in over 100 startups registering with ISRO in 2023 alone 2.

Jeh Aerospace’s early traction—securing $100 million in contracts and delivering 100,000 flight-critical components in its first year—demonstrates the market opportunity for Indian precision manufacturing in this sector 3.

This strategic shift is similar to successful models in countries like Brazil (Embraer) and Canada (Bombardier), where national champions emerged through strategic investments and gradually built global aerospace manufacturing capabilities.

2️⃣ Aerospace ventures represent India’s next major innovation frontier

The Indian spacetech and aerospace sector is projected to grow into a $44 billion economy by 2030, highlighting the significant economic potential that IndiGo is tapping into with its venture fund 2.

This growth comes despite a challenging funding environment, with the sector experiencing a 35% decline in funding to $81 million in 2024, making IndiGo’s ₹450 crore fund a significant capital injection for the ecosystem 2.

To further catalyze growth, the Indian government has introduced a ₹1,000 crore venture capital fund specifically for spacetech startups, creating a supportive environment for companies like Jeh Aerospace 2.

The founders’ backgrounds at Tata’s aerospace joint ventures with Boeing, Lockheed Martin, and Sikorsky represent a notable trend in the industry—where expertise developed at multinational corporations is now being leveraged to build domestic capabilities.

By focusing on AI-driven production and digital manufacturing infrastructure, Jeh Aerospace exemplifies how Indian aerospace startups are combining advanced technology with manufacturing expertise to compete globally.

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