Indian Flying Taxi Startup ePlane Eyes Up to $50 Million Fundraise to Power Next Phase of Growth

India’s urban skies may soon look very different.

As traffic congestion tightens its grip on major cities and the race for cleaner mobility accelerates, a new class of startups is quietly preparing to lift off—literally. Among them is Chennai-based electric aircraft startup ePlane, which is now gearing up for a major capital infusion as it advances its ambitions in the emerging electric vertical take-off and landing (eVTOL) space.

According to sources, ePlane is looking to raise between $40 million and $50 million in a fresh funding round. The round is expected to comprise a mix of equity, convertible instruments, and potentially government-backed research and development support. The structure signals both investor interest and the capital-intensive nature of building next-generation electric aircraft.

Board-Approved Convertible Tranche to Close Next Month

The startup has already secured board approval for a $15–20 million convertible tranche, which is expected to close next month. This tranche will serve as the immediate funding bridge as the company progresses toward critical product and engineering milestones.

Beyond this, ePlane plans to raise additional growth capital. A significant portion of that strategy hinges on its application to India’s ambitious ₹1 lakh crore (approximately $11 billion) RDI Fund, which was launched last November to catalyse research, development, and innovation across strategic sectors.

However, the fund’s rollout has been gradual. So far, only around ₹300 crore (approximately $33 million) has been allocated, indicating that large-scale disbursement is still in early stages. For deep-tech startups like ePlane, timely access to such funds could play a pivotal role in accelerating development cycles and de-risking capital expenditure.

From IIT Madras Incubation to National Ambitions

Incubated at IIT Madras, ePlane represents a growing cohort of Indian deep-tech ventures that are pushing into highly sophisticated domains traditionally dominated by global aerospace majors.

The company is building electric aircraft designed for urban air mobility—a space globally positioned as the next frontier of transportation. With cities grappling with gridlock and pollution, eVTOL aircraft promise short-distance, zero-emission air travel that could significantly cut commute times.

ePlane aims to unveil a full-scale prototype of its electric aircraft later this year, a milestone that could substantially strengthen its position in investor conversations. A working prototype in the air mobility space is not just a technological validation—it is a signal of regulatory readiness, engineering maturity, and manufacturing capability.

Betting on Digital Twins and Advanced Simulation

In parallel with physical development, the startup is also investing in digital sophistication. ePlane is developing digital twins of its eVTOL models using Nvidia Omniverse technology. Digital twins allow engineers to simulate, test, and refine aircraft performance in a virtual environment before moving to physical builds.

For an industry where safety, compliance, and reliability are paramount, such digital simulation tools can significantly reduce iteration time and costs. They also align with global aerospace trends where advanced modelling is becoming integral to aircraft certification and performance optimisation.

Capital-Intensive, High-Impact Bet

The planned $40–50 million raise underscores the heavy capital requirements inherent in aerospace innovation. Unlike software startups, electric aviation ventures require long development cycles, regulatory approvals, advanced manufacturing setups, and high-end testing infrastructure.

Yet, the opportunity is equally significant. Urban air mobility is projected globally as a multi-billion-dollar market over the coming decade. For India, where mega-cities continue to expand and infrastructure strains under population density, electric air taxis could represent both an economic and environmental breakthrough.

With a convertible tranche nearing closure, a full-scale prototype on the horizon, and potential backing from a large national R&D fund, ePlane appears to be entering a defining phase in its journey.

If successful, the Chennai startup won’t just be raising capital—it will be attempting to lift India’s aviation ambitions to an entirely new altitude.