Indigo’s parent InterGlobe Aviation set to launch venture capital firm

The airline announced today that it made 3,090.6 crore, its highest-ever quarterly profit, for the April–June 2023 quarter. This was made possible by the strong demand for air travel during that time, decreased fuel prices, and favorable foreign exchange movements.

The largest airline in India, IndiGo, is operated by InterGlobe Aviation Limited, which announced today that in order to better utilize its cash flows, it intends to acquire assets including engines and aircraft as well as make early investments in aviation-related businesses. The largest airline in India has ₹15,691 crore in free cash as of June 30, which was 89% more than the previous quarter.

The airline announced today that it made 3,090.6 crore, its highest-ever quarterly profit, for the April–June 2023 quarter. This was made possible by the strong demand for air travel during that time, decreased fuel prices, and favorable foreign exchange movements.

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Given our excellent cash position, we also want to make some investments in aircraft and associated property. In addition, we intend to establish a venture capital arm, subject to regulatory permissions, to invest in early-stage businesses in the aviation, consumer-focused, and related industries such travel, hotel, lifestyle, and lifestyle management. Gaurav Negi, the chief financial officer, told analysts on the conference call following the company’s earnings that “we believe these investments will help us add value to the airline given our large consumer base.”

Of its 316 aircraft, 14 are owned by IndiGo, 300 are leased for operation, and two are on a wet lease agreement, which rents both the aircraft and the crew. According to the airline’s management, the decision to shift strategy was made because of the positive sentiment in the industry over the last three quarters, even though it was no longer prudent to acquire assets like engines and planes once the Covid-19 outbreak affected the company. From October 2022 to June 2023, the airline declared a total net profit of ₹5,421 crore for the previous three quarters.

Initially, we plan to invest ₹7 crore in the venture capital industry. There are talks taking place within. This opinion is directed. The amount of capital we wish to devote to it is still up in the air, Negi continued.