The ePlane Company, an Indian electric air taxi startup, has raised $14 million as it sets its sights on starting manned air taxi testing by mid-2025, it said on Thursday.
The funds will be used for the development and certification of its manned electric vertical takeoff and landing (eVTOL) aircraft, ePlane, which raised the money in a Series B funding round, co-led by Speciale Invest and Antares Ventures, according to a statement.
The fundraise gives the Chennai-based firm a post-money valuation of $46 million, up from $21.2 million in December 2021.
So far, it has raised $19.85 million.
eVTOLs are seeking to revolutionize urban travel by developing battery-powered aircraft that can take off and land vertically, giving commuters a chance to avoid traffic snarls in busy metropolitan areas.
Analysts say India is primed to be among the biggest markets for the sector as its growing population looks for ways to avoid heavy traffic in cities.
eVTOL companies promise competitive ticket prices, which can be cheaper than cab fares.
The global air taxi market was valued at $2.3 billion in 2023 and is projected to be worth $14 billion by end-2032, a study by Global Market Insights showed.
With its air taxis, Sky Wings is targeting Pakistani travelers who are in a rush
ePlane rival Sarla Aviation said it will cost passengers about $21 to cover a near-38 kilometre stretch between Bengaluru airport and an urban locality called eCity in 19 minutes, using its flying taxis.
Traditional ride-hailing cabs, such as Uber , can take about 2 hours to cover the same distance and cost around $30, factoring in surge pricing.
Last month, the Federal Aviation Administration, the US civil aviation regulator, finalized comprehensive training and pilot certification rules for flying air taxis, addressing a key hurdle to their deployment.
Only a handful of air taxi companies have received certificates to begin commercial operations globally.
Boeing-backed Archer Aviation said earlier this year it aims to begin its India operations by 2026.
It has partnered with InterGlobe Enterprises, which backs IndiGo, India’s top airline.