Bengaluru-based Sarla Aviation, named in honor of India’s first woman pilot Sarla Thukral, has raised $10 million in a Series A1 funding round led by Accel.
This milestone marks a significant leap for the one-year-old startup, which aims to redefine urban mobility with electric air taxis designed specifically for India’s unique challenges.
Addressing India’s Urban Congestion
Sarla Aviation is tackling India’s notorious urban traffic by introducing electric vertical takeoff and landing (eVTOL) vehicles tailored to the country’s dense population and travel patterns.
Unlike many eVTOL designs that prioritize long-range capabilities, Sarla Aviation’s aircraft focus on higher payloads, accommodating up to six passengers and a pilot with a payload capacity of 680 kilograms (1,500 pounds).
While the range is capped at 160 kilometers (99 miles) per charge—shorter than the 120–160 miles offered by other eVTOLs—this aligns with the shorter trip requirements in Indian cities, making it an efficient solution for intra-city transport.
Funding for Expansion
The $10 million raised will be utilized for several critical initiatives:
- R&D Hub: Establishing a cutting-edge research and development center in Bengaluru.
- Team Expansion: Growing the current team of 30 to over 100 professionals.
- Prototype Development: Building and testing advanced prototypes to refine the aircraft design.
The funding round also saw participation from notable angel investors, including Flipkart co-founder Binny Bansal, Zerodha co-founder Nikhil Kamath, and Swiggy co-founder Sriharsha Majety, underscoring strong industry confidence in Sarla Aviation’s vision.
Shunya
Sarla Aviation’s first prototype, Shunya (Hindi for zero), will debut at the Bharat Mobility Global Expo in New Delhi on January 17. Featuring a hybrid lift-and-cruise design, Shunya boasts a payload capacity 35% greater than many Western eVTOL counterparts while maintaining cost efficiency.
Initial operations will focus on airport transfers in Bengaluru, known for its traffic bottlenecks, before expanding to cities like Mumbai, Delhi, and Pune.
Beyond passenger transport, Sarla plans to introduce a free air ambulance service, addressing critical public health needs by reducing delays caused by traffic congestion.
Democratizing Air Mobility
Sarla Aviation aims to make air taxis accessible to a broader demographic. Initially, fares will be comparable to the higher end of ride-hailing services like Uber and Ola.
Over time, the company envisions bringing costs down to levels comparable to auto-rickshaw fares, effectively democratizing urban air travel.
Localization and Manufacturing
To align with India’s “Make in India” initiative, Sarla Aviation is targeting 80% localization in its production processes by the time of commercial rollout.
This move not only reduces costs but also enhances supply chain reliability. Currently, the company relies on third-party suppliers for prototype development.
Competition and Differentiation
The electric air taxi market in India is heating up, with competitors like Archer Aviation and ePlane already gaining traction. Archer, in partnership with InterGlobe Enterprises, and ePlane, which recently secured $14 million in funding, plan to launch operations in India by 2025.
Sarla Aviation’s focus on higher payloads, affordability, and localized manufacturing gives it a unique edge in addressing India’s specific urban mobility challenges.
Strategic Vision and Global Aspirations
Co-founder and CEO Adrian Schmidt, formerly with Germany’s Lilium, envisions Sarla Aviation as more than just an air taxi company.
“Our goal is to create a mass mobility system that serves and enables India, similar to how cars transformed the United States in the 20th century,” Schmidt explained.
Sarla’s focus on affordability and reliability also positions it as a potential model for urban mobility in other rapidly growing regions worldwide.
Investor Confidence
The diverse investor base supporting Sarla Aviation includes leaders from India’s startup ecosystem, such as Urban Company’s Abhiraj Singh Bhal, LivSpace’s Ramakant Sharma, and Polygon’s Sandeep Nailwal.
According to Pratik Agarwal, Principal at Accel, “Sarla Aviation’s emphasis on cost economics and reliability could set a blueprint for other urban markets globally.”
Future of Urban Mobility
With strong financial backing, a clear strategic vision, and innovative prototypes like Shunya, Sarla Aviation is poised to transform how India navigates its congested cities.
The company’s ambitious goal of launching commercial air taxi operations by 2028 marks a bold step toward revolutionizing urban transportation, blending cutting-edge technology with affordability.
