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Indian flying taxi startup ePlane seeks up to $50m funding
Indian electric aircraft startup ePlane is seeking to raise US$40-50 million through a funding round that includes equity, convertible instruments, and potential government-backed R&D support, according to sources.
The Chennai-based company, incubated at IIT Madras, has secured board approval for a US$15-20 million convertible tranche to close next month, with plans for additional growth capital depending on its application for the 1 lakh crore rupees (US$11 billion) RDI Fund.
The RDI Fund, launched last November, has only partially activated, with about 300 crore rupees (US$33 million) allocated so far.
ePlane aims to unveil a full-scale prototype of its electric aircraft this year and is developing digital twins of its eVTOL models using Nvidia Omniverse technology.
🔗 Source: The Economic Times
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Implications, context, and why it matters.
EPlane’s funding push sits inside a fast-moving Indian air taxi market
- The fundraising comes as India’s aviation authority (DGCA) released an advisory circular in September 2024 that lays out airworthiness certification requirements for electric vertical take-off and landing (eVTOL) aircraft, setting clearer rules for a race to market 1.
- Four months after that circular, ePlane secured formal DGCA acceptance for Type Certification of its eVTOL aircraft, the e200X. The company plans to start eVTOL services by 2026 1.
- Competition is rising. Archer Aviation signed an MoU (memorandum of understanding) with InterGlobe Enterprises (IndiGo’s parent) for a proposed 200-aircraft, $1 billion arrangement, pending regulatory approvals and clearances. Archer has said air taxis will fly in India by 2026 1.
- The round supports ePlane’s build and testing work while it keeps up with Indian rivals such as Sarla Aviation and BluJ Aero, which are also moving prototypes forward 1.
Software partnerships help carry the cost of building aircraft
- ePlane uses Nvidia Omniverse to create digital twins (virtual replicas used to simulate and test a real-world product) of its eVTOL designs. It also works with Dassault Systèmes, using the cloud-based 3DExperience platform to speed development and back up the DGCA certification process 2.
- Many deep-tech hardware companies lean on established software to shorten engineering cycles and lower certification risk. That matters in a capital-intensive sector that has faced setbacks such as German air-taxi maker Lilium’s insolvency filing 3, 1.
- This software-first path aligns with ePlane’s plan to start with air ambulance and cargo flights, then move into passenger service after regulatory approval.
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