Star Air raises Rs 150 cr in Series B round

Mumbai, Nov 13 (PTI) Kolhapur-based Sanjay Ghodawat Group's aviation arm Star Air on Thursday said it has raised Rs 150 crore in a Series B round from a consortium of marquee investors, including Micro labs Ltd, and Deepak Agarwal of Bikaji Foods.

The newly raised capital will be deployed to expand the airline's fleet and route network, strengthen NSOP (Non-Scheduled Operator Permit) operations, and enhance its MRO (maintenance, repair and overhaul) capabilities, the airline said.

The Rs 150-crore capital infusion is part of the overall Rs 350-crore Series B fundraise, the regional airline said, adding that the remaining Rs 200 crore will be by the next financial year.

This is also the first external fundraise to power Star Air's next phase of expansion with an ambitious goal to operate 50 aircraft by 2030, it said.

"This fundraise brings us closer to our vision of building a comprehensive aviation platform spanning airline operations, NSOP services, MRO facilities, cargo and aviation training. Our immediate goal is to connect more cities and communities across India with swift, secure, comfortable, and affordable air travel," said Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group.

India's aviation sector is seeing robust growth, driven by rising passenger demand and increasing emphasis on regional connectivity, Star Air said, adding that it has established a strong foundation of operational discipline and is one of the only two profitable airlines in India.

With substantial capex planned over the coming years, Star Air is poised to strengthen its market position and accelerate its expansion in the dynamic aviation landscape, the airline said.

"This fundraise marks a major step toward strengthening Star Air's operational backbone. It will enable us to accelerate fleet expansion, enhance route efficiency, and further invest in NSOP and MRO capabilities," Star Air CEO Simran Singh Tiwana said.

As the airline progresses toward its 50-aircraft goal by 2030, its focus remains on maintaining operational excellence and safety, Star Air said.

Founded in 2019, Star operates a fleet of 11 aircraft, comprising eight Embraer E145 and three E175s, along with four Airbus Helicopters.

The airline currently connects 31 domestic destinations. PTI IAS TRB