Zomato’s Deepinder Goyal Eyes Regional Aviation Venture With LAT Aerospace

Zomato cofounder Deepinder Goyal is looking to tap the regional air travel sector with new venture LAT Aerospace.

In a recent LinkedIn post, the foodtech major’s former chief operating officer Surobhi Das said that she and Goyal want to build LAT Aerospace to facilitate “high-frequency, low-cost and demand-based” regional air travel in India. 

The startup is building STOL (short take-off and landing) and medium-haul aircraft to ease air connectivity in tier II and tier III cities.

“Think buses in the sky — affordable, high-frequency, and designed to connect the places the airline industry overlooked,” the post added.

In March, Goyal said to have infused $20 Mn (around INR 174 Cr) in the startup, which was then operating in stealth mode. While Das founded LAT Aerospace, Goyal serves as the non-executive cofounder and investor for the venture.

What Problem Is LAT Aerospace Solving?

As per Das’s LinkedIn post, India has more than 450 airstrips.

Airstrip is a narrow  and clear piece of land where an aircraft can land or take off. These airstrips may have very basic or no airport facilities. Out of these 450 airstrips available in India, only 150 are being commercially utilised by the airlines on big and small regional airports.

Rest of the aviation infrastructure is being wasted with little to no flying operations.

With LAT aerospace, Das and Goyal are aiming to build “a network of high-frequency, low-cost, 24 seater, STOL (short take-off and landing), medium-haul aircraft.”

The startup has a vision to convert these ideal airstrips into small “air-stops”—- no bigger than a parking lot. These air-stops will connect tier II and tier III cities via airspace and ease accessibility to air travel.

“Our aircraft will take off and land in compact “air-stops” — no bigger than a parking lot — built closer to where people actually live. No chaos. No security lines. Just walk in and fly,” the post added.

The startup is also hiring aerospace engineers and systems designers.

Why Is Goyal Bullish On Regional Airspace

Goyal has prior experience in disrupting an untapped market after he facilitated food delivery across India with Zomato.

India’s overall aviation, defence and space market is expected to reach $26.3 billion by 2030, out of which domestic air travel accounts for 68% of airline capacity in India.

The data around underutilised airstrips in the country clearly indicated that regional air travel is an untapped market. 

There are several startups including Sarla Aviation, ePlane and giants like IndiGo Airlines’ parent InterGlobe Enterprises, which are working towards bringing air taxis in the country.

Earlier this year, Sarla Aviation bagged $10 Mn in a Series A1 funding round led by Accel to build a cleaner, quieter, and more affordable alternative to traditional helicopter taxis. The startup is aiming to launch its first commercial flight by 2028.

Similarly, ePlane also raised $14 Mn in its Series B funding round to develop and certify its manned aircraft, with flight testing scheduled for mid-2025. The startup recently partnered with Dubai-based Empire Aviation Group to deploy electric vertical takeoff and landing (eVTOL) vehicles across India, UAE, Thailand and Indonesia.

Meanwhile, Indigo’s parent is also mulling to launch electric taxi services in India by 2026.

In 2016, the government also launched The UDAN Scheme (Ude Desh Ka Aam Nagrik), which is a flagship initiative to improve regional air connectivity and facilitate affordable air travel in tier II and tier III cities.