On Monday, February 23, 2026, reports emerged that the Chennai-based electric aircraft startup The ePlane Company is in advanced discussions to raise between $40 million and $50 million in its Series C funding round.
The fundraise marks a critical transition for the IIT Madras-incubated company as it moves from design to large-scale prototype testing and regulatory certification for its electric vertical take-off and landing (eVTOL) aircraft.
Strategic Funding Structure
The company is utilizing a multi-layered approach to capital formation, combining private venture capital with potential government-backed innovation funds.
- Lead Investor: Deep-tech venture firm Speciale Invest is co-leading the round.
- Instruments: The round is expected to be a mix of equity and convertible instruments.
- Immediate Tranche: The board has already approved a $15–$20 million convertible tranche, which the company aims to close by March 2026.
- Government Support: The final size of the round may depend on the outcome of the company’s application for the Indian government’s ₹1 lakh crore RDI (Research, Development, and Innovation) Fund, which was activated late last year to support frontier technologies.
The “Digital Twin” Partnership with NVIDIA
Just days before the funding news, ePlane announced a landmark technical partnership with NVIDIA to accelerate the development of its flagship aircraft, the e200x.
- Aerospace Simulation: ePlane is using NVIDIA Omniverse to create a high-fidelity “Digital Twin” of the e200x. This allows engineers to simulate millions of virtual kilometers and test extreme “edge cases”—such as bird strikes or sensor failures—in a physics-accurate digital environment.
- Onboard Intelligence: The aircraft will utilize the NVIDIA IGX platform for real-time data fusion in the cockpit, giving pilots enhanced situational awareness and enabling the craft to make autonomous safety decisions.
Timeline to Commercialization
The ePlane Company is pursuing a “pragmatic” phased rollout to de-risk its entry into the aviation market.
| Phase | Target Timeline | Focus Area |
| Prototyping | Late 2026 | Unveiling and testing of the full-scale e200x prototype. |
| Cargo & Medical | Early 2027 | Launching air ambulance and cargo services (clearer regulatory path). |
| Passenger Taxis | Late 2027 / 2028 | Commencing urban air taxi services for 1 pilot and 2 passengers. |
The Competitive Sky
The race for India’s urban air mobility (UAM) market has intensified following the DGCA’s release of eVTOL certification guidelines in late 2024. ePlane is competing with:
- Archer Aviation: Partnered with InterGlobe (IndiGo) for a 2026 launch in Delhi/NCR.
- Sarla Aviation: Backed by Binny Bansal and recently raised $10 million.
- BluJ Aero: Focusing on long-range regional connectivity using hydrogen-electric propulsion.
