InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, has decided to set up a Venture Capital division. This strategic move is aimed at investing in early-stage companies operating in the aviation and related consumer sectors, including travel, lifestyle, hospitality, and transportation.
An airline official stated, “This new division’s primary focus will be investing in early-stage companies operating in aviation and related consumer sectors, such as travel, lifestyle, hospitality, and transportation.”
In an official filing to the stock exchanges, the company announced that its board has given the green light for the incorporation of a Private Limited Company to oversee these investments, initially funded with Rs 30 crore.
The location for this subsidiary will be within the Special Economic Zone at Gujarat International Finance Tec-City, as detailed in the exchange filing. The move underscores the company’s commitment to strategic growth and diversification in key sectors.
Furthermore, the board has authorized the issuance of corporate guarantees, amounting to a maximum of USD 996 million. These guarantees are intended to secure the financial obligations of the newly established wholly-owned subsidiary.
This significant development had been previously disclosed by Gaurav Negi, the airline’s Chief Financial Officer, during a post-earnings conference call on August 2. The move reflects IndiGo’s commitment to expanding its presence and influence in the aviation and related sectors, with an eye toward future opportunities and growth in these markets.