The ePlane Company Nears $50 Million Fundraise: India’s eVTOL Leader Prepares for Takeoff
In a strong signal of investor confidence in India’s deep-tech aerospace sector, Chennai-based electric air taxi startup The ePlane Company is on the verge of closing one of the largest funding rounds in Indian aviation tech history.
According to multiple reports, the IIT Madras-incubated startup is in advanced discussions to raise $40–50 million in a Series C round, with existing backer Speciale Invest expected to co-lead the round alongside other investors .
The proposed round combines equity, convertible instruments, and potential support from the government’s newly launched ₹1 lakh crore Research, Development, and Innovation (RDI) Fund—a thoughtful structure that reflects the capital-intensive nature of frontier deep-tech ventures .
This fundraising push comes at a pivotal moment for The ePlane Company as it transitions from prototype validation toward certified commercial operations, aiming to bring electric vertical takeoff and landing (eVTOL) air taxis to India’s congested metropolitan skies by the late 2020s .
The Fundraise: Structure and Strategy
Target Size: $40–50 Million
The proposed round represents a significant step up from the company’s previous fundraising:
A Multi-Tranche Approach
The fundraising strategy reflects the complexity of financing a deep-tech aerospace venture:
1. Convertible Tranche ($15–20 million)
The company has already secured board approval for this tranche, expected to close by March 2026 .
2. Growth Capital Infusion
A follow-on equity component, the size of which will depend on the outcome of the company’s application to the RDI Fund .
3. RDI Fund Support
Launched in November 2025, the government’s ₹1 lakh crore RDI Fund is designed to support deep-tech innovation. Partial activation has begun, with first-level fund managers securing about ₹300 crore to date .
Investor Rationale
Speciale Invest managing partner Vishesh Rajaram explained the fund’s continued commitment:
“The structure of this fundraise is thoughtful. Combining equity instruments with a potential RDI Fund application is consistent with how frontier deep-tech companies in India are increasingly approaching capital formation.”
Crucially, Rajaram emphasized that the RDI component, if approved, would be complementary to the private raise and would not gate the investment decision: “We evaluate the company on its own merits” .
What the Fresh Capital Will Fund
The new funding will accelerate The ePlane Company’s journey from prototype to profitable operations across multiple dimensions :
1. Accelerate Prototype Development and Testing
The company is preparing to unveil a full-scale prototype of its electric aircraft in 2026 . Key milestones include:
- Tethered hover tests already completed successfully
- Full-scale flight testing targeted to begin in early 2026
- Development of separate models for ground testing and flight testing
2. Push Forward Regulatory Certifications
Certification is the critical path for any eVTOL venture. The ePlane Company has already achieved a significant milestone: it is the first private Indian firm to receive Design Organisation Approval (DOA) from the DGCA for an electric aircraft .
- Air ambulance variant: Expected certification by early second half of 2027
- Air taxi and cargo versions: Certification targeted before end of 2027
- Regulatory alignment: Harmonization with EASA (European) and FAA (US) standards
The company is working closely with India’s aviation regulator, which has issued three sets of rules for aircraft standards, landing ports, and pilot training—with maintenance and air traffic regulations still pending .
3. Scale Manufacturing Capabilities
The company has already operationalized a 60,000 sq.ft. manufacturing facility in Chennai . With fresh capital, it will:
- Expand flight testing programs at the 250-acre IDAS satellite campus
- Scale manufacturing readiness for initial production
- Identify production partners for initial output of ~100 aircraft annually, scaling to 900–1,000 within a few years
4. Build Strategic Partnerships
The company is actively engaging with:
- Property developers and airports for vertiport infrastructure (its compact footprint enables rooftop operations)
- Operators for air ambulance and air taxi use
- Technology partners like NVIDIA for digital twin development
5. Prepare for Commercial Deployment
The phased commercialization strategy :
- Air ambulance and cargo services (initial operations)
- Passenger air taxis (post-regulatory clearances)
Initial routes will target intra-city connections in high-density metros like Mumbai, Bengaluru, Delhi, and Hyderabad, where traffic congestion creates urgent demand for faster mobility solutions.
The Technology: e200x and Digital Innovation
The Aircraft Platform
The ePlane Company is developing its flagship e200x electric air taxi :
NVIDIA Collaboration: Digital Twin Technology
In a groundbreaking announcement on February 19, 2026, The ePlane Company revealed it is building India’s first electric air taxi using NVIDIA Omniverse libraries .
Key elements of the collaboration:
1. High-Fidelity Digital Twin
The company will create a physics-accurate digital twin of the e200x, enabling engineers to:
- Simulate complex aerodynamic interactions
- Test sensor responses and flight scenarios with precision
- Fly “millions of kilometers virtually” before physical flight
- Train algorithms on edge cases (extreme weather, sensor failures) without risk
As Founder & CTO Prof. Satya Chakravarthy explained: “By validating our flight operations suite in NVIDIA Omniverse, we are effectively pushing the limits of the aircraft thousands of times in simulation so that we never have to in reality. This level of rigor is what defines sovereign aerospace capability” .
2. NVIDIA IGX Onboard Computing
The NVIDIA IGX platform will serve as the onboard computing solution, integrating multiple sensors (cameras, radars) to deploy advanced algorithms for data fusion, decision-making, and visualization .
3. Future AI Integration
The company plans to use NVIDIA Cosmos world foundation models and NVIDIA Nemotron open models for future development .
Cost Economics
A critical factor for commercial viability: The company expects operating costs to fall enough for insurance coverage to become viable, with air ambulance flights targeted at ₹10,000–15,000 compared to current helicopter tariffs of ₹50,000–1 lakh .
The Milestone Journey So Far
The ePlane Company has achieved significant traction since its 2019 founding :
Key Milestones
The Team
Led by Prof. Satya Chakravarthy (Founder & CTO), an IIT Madras professor with deep expertise in aerospace engineering, the team combines academic rigor with entrepreneurial execution. Key leadership includes Vishnu Ramakrishnan (SVP – Business Partnerships & AAM Strategy) and Bakthakolahalan Shyamsundar (Principal Engineer – Avionics Systems & Autonomy) .
The Market Opportunity: Why India Is Ready for eVTOL
Urban Congestion Crisis
India’s metropolitan cities face acute traffic congestion with enormous economic and social costs. As Stuart Simpson, CEO of Vertical Aerospace, noted: “India is a natural proving ground for eVTOL technology considering a few key elements—population size, demographics, a growing younger generation, significant increase in wealth, and regional geography with a lot of mega cities that are very difficult to get around” .
Public Enthusiasm
Surveys show over 75% of Indian respondents support the concept of urban air mobility .
Addressable Applications
The Indian market offers multiple use cases :
- Airport transfers (hour-long journeys reduced to minutes)
- Inter-city and intra-city commutes
- Emergency medical services and air ambulances
- Cargo and logistics
- Defense applications
- Aerial sightseeing and air tours (cricket matches, film festivals)
Cost Advantage
The ePlane Company’s target operating costs (₹10,000–15,000 for air ambulance vs. ₹50,000–1 lakh for helicopters) could unlock mass adoption .
The Competitive Landscape
The ePlane Company operates in an increasingly competitive global and domestic market:
Global Players Targeting India
Domestic Competitors
The ePlane Company’s first-mover advantages include:
- First DGCA Design Organisation Approval for a private electric aircraft
- Deep IIT Madras incubation roots and academic credibility
- Strong existing investor relationships
- Proven ability to execute on complex deep-tech milestones
The Ecosystem Context: India’s Deep-Tech Aerospace Momentum
The ePlane Company’s fundraising reflects broader tailwinds for Indian aerospace innovation:
Policy Support
- IN-SPACe reforms opening space and aerospace to private players
- RDI Fund (₹1 lakh crore) supporting deep-tech R&D
- DGCA framework development for eVTOL certification
- CII recommendations for pilot corridors and rooftop vertiports
Infrastructure Vision
The Confederation of Indian Industry (CII) has proposed:
- A pilot eVTOL corridor linking Gurugram, Connaught Place, and Jewar International Airport
- Rooftop vertiports on office towers, hospitals, and residential complexes as an alternative to expensive ground-based infrastructure
- Dedicated AAM regulatory function within DGCA
Deep-Tech Investor Appetite
The ePlane round follows other significant deep-tech investments:
- Sarvam AI’s foundational model development
- Yotta’s $2 billion GPU supercluster
- Peak XV’s $1.3 billion fund with deep-tech focus
- Lightspeed’s 60% applied AI allocation
What This Means for Different Stakeholders
For Founders
- Capital-intensive deep-tech can attract funding with the right milestones and investor relationships
- Structured financing (equity + convertible + government support) can bridge the gap to commercialization
- Early regulatory engagement is essential—The ePlane Company’s DGCA approval was a critical de-risking milestone
For Investors
- Patient capital is required for aerospace ventures with long certification timelines
- Government RDI support can complement private investment
- India’s urban mobility crisis creates a massive addressable market
For Policymakers
- Continue developing regulatory frameworks for eVTOL certification and operations
- Support vertiport infrastructure through urban planning integration
- Expand RDI Fund activation to support more deep-tech ventures
For Potential Customers
- Air ambulance services could become affordable (₹10,000–15,000 vs. current ₹50,000–1 lakh)
- Air taxi commutes could transform urban travel times from hours to minutes
- Cargo and logistics applications could enable faster delivery
Challenges Ahead
Despite the momentum, significant challenges remain:
1. Certification Timeline
Aviation certification is inherently lengthy and uncertain. The company’s target of 2027 certification for air ambulance and 2027–2028 for passenger variants requires flawless execution .
2. Capital Intensity
Aerospace ventures require sustained capital infusions. The company has indicated openness to raising up to $100 million in future rounds as it approaches commercialization .
3. Infrastructure Development
Vertiport networks need to be built. While CII has proposed rooftop solutions, actual deployment requires coordination with property developers, urban planners, and regulators .
4. Public Acceptance and Safety
Building trust in a new mode of transportation requires impeccable safety records and community engagement.
5. Competition
Global players like Archer and Vertical Aerospace have deeper pockets and longer track records. Domestic competitors are also emerging .
6. Cost Economics
The targeted ₹10,000–15,000 for air ambulance services needs validation at scale .
Conclusion: India’s Urban Air Mobility Future Takes Shape
The ePlane Company’s $40–50 million fundraising push represents a defining moment for India’s deep-tech aerospace ecosystem. If successful, it would mark one of the largest rounds in Indian aviation tech history and accelerate the country’s entry into the global urban air mobility race .
The company has checked critical boxes:
- World-class technology validated through NVIDIA collaboration
- Regulatory credibility with DGCA Design Organisation Approval
- Experienced team led by IIT Madras professors and engineers
- Clear roadmap from prototype to certification to commercialization
- Supportive ecosystem with policy tailwinds and investor interest
As Prof. Satya Chakravarthy emphasized: “We are not just building an aircraft; we are building an ecosystem” .
For India’s commuters stuck in endless traffic jams, for patients needing urgent medical evacuation, for businesses seeking faster logistics—the promise of electric skies over Bharat is moving closer to reality.
With this fresh capital, The ePlane Company is well-positioned to capture the massive domestic market while eyeing export potential to Southeast Asia and the Middle East.
Exciting times ahead for electric skies over Bharat!
