Electric air taxi startup Sarla Aviation has raised $10 million in a fresh funding round led by Accel, with participation from prominent angel investors including Binny Bansal, Nikhil Kamath, and Sriharsha Majety. This investment brings the total funding raised by the startup to $11.7 million, following a seed round of $1.7 million led by Accel last year.

The Bengaluru-based startup, named after India's first woman pilot Sarla Thukral, is focused on developing aircraft that can carry more weight, even if that means shorter ranges. According to CEO Adrian Schmidt, this approach is tailored to the Indian market, where a shorter range is acceptable as long as the price point is attractive. The startup plans to use the funds to build an R&D center in Bengaluru, scale its team, and create new prototypes to gather data and validate its concept.

Sarla Aviation's electric air taxi concept differs from most flying taxi concepts, which typically have a two- to four-passenger capacity. The startup is designing a vehicle that can carry six passengers and a pilot, weighing up to 680 kilograms (1,500 pounds), with a range of 160 kilometers (99 miles) per battery charge. While this reduces the range, the increased payload capacity is seen as a key advantage in the Indian market.

The startup's founders, Adrian Schmidt, Rakesh Gaonkar, and Shivam Chauhan, have a strong background in the electric vertical take-off and landing (eVTOL) aircraft industry. Schmidt, a German citizen, previously worked at Lilium, a Munich-based eVTOL aircraft manufacturer that shut down its operations last year. The trio saw India as a potential market for their flying taxi venture and incorporated Sarla Aviation in January 2024.

Sarla Aviation is set to showcase its first air taxi prototype, called Shunya, at an industry event in New Delhi on January 17. The company plans to start testing prototypes later this year and launch its first commercial air taxi in 2028. The startup aims to start its commercial operations for airport transfers in Bengaluru, gradually expanding to Mumbai, Delhi, and Pune. Additionally, it plans to launch a free air ambulance service parallel to commercial ride-sharing services in its first phase.

The startup's air taxi ticket is expected to be priced similarly to the top-line of an Uber or Ola cab, with the goal of eventually reducing the fare to match what Indian riders typically pay for an auto-rickshaw. Sarla Aviation also plans to have 80% of its supply chain fully indigenous by the time it starts commercial operations.

Sarla Aviation will face competition from well-funded Archer Aviation, which partnered with InterGlobe Enterprises in 2023, and ePlane, which raised $14 million in November at a $46 million valuation. Both competitors aim to launch flying taxis in India next year. However, Sarla Aviation's focus on the Indian market and its unique approach to electric air taxis may give it an edge in the growing urban air mobility market.

As the urban air mobility market continues to take shape, Sarla Aviation's innovative approach and commitment to the Indian market make it an exciting player to watch in the coming years. With its latest funding round and plans for commercial launch in 2028, the startup is poised to make a significant impact on India's congested streets and beyond.