The ePlane Company, an Indian startup focused on electric air taxis, announced it has raised $14 million in a Series B funding round. The funds will support the development and certification of its manned electric vertical takeoff and landing (eVTOL) aircraft, ePlane, with plans to begin manned air taxi testing by mid-2025, the company stated on Thursday.
The funding round, co-led by Speciale Invest and Antares Ventures, has boosted ePlane’s post-money valuation to $46 million, up from $21.2 million in December 2021. The company has now raised a total of $19.85 million.
“We are excited to take the next step in bringing ePlane to life and help revolutionize urban mobility,” the company said in its statement. “The development of eVTOL technology is a key part of our efforts to address the challenges of urban congestion and offer a more efficient, eco-friendly mode of transportation.”
eVTOLs are seen as a promising solution for alleviating traffic congestion in metropolitan areas. These battery-powered aircraft can take off and land vertically, offering a potential alternative to traditional ground transportation. Analysts note that India, with its rapidly growing population and significant traffic issues, could be a major market for eVTOLs, as they promise competitive ticket prices that may be cheaper than conventional taxi fares.
According to a report by Global Market Insights, the global air taxi market was valued at $2.3 billion in 2023 and is projected to grow to $14 billion by 2032. In comparison, ePlane’s competitor, Sarla Aviation, has estimated that its air taxis could transport passengers across a 38-kilometer stretch in just 19 minutes, with fares around $21—significantly cheaper and faster than the $30 ride-hailing fare that can take up to two hours in the same area.
The regulatory landscape for eVTOLs has seen progress as well, with the Federal Aviation Administration (FAA) in the United States recently finalizing training and certification rules for air taxi pilots. However, only a few companies have received the necessary certifications to begin commercial operations globally.
As ePlane moves forward with its plans, it faces competition from major players such as Boeing-backed Archer Aviation, which is aiming to launch operations in India by 2026.
