New Delhi, Sept 4 (KNN) IndiGo on Monday announced the creation of a venture capital arm to invest in early-stage companies operating in aviation, consumer-focused allied sectors such as travel and lifestyle, hospitality and transportation sector, reported Moneycontrol.

The company in a filing to the exchanges outlined that the Board of Directors has approved the incorporation of a Private Limited Company with an initial investment of Rs 30 crore.

Last month, the airline’s Chief Financial Officer, Gaurav Negi, had announced the creation of the venture arm while addressing a post-earnings conference.

"We are looking to start a venture capital firm for investments into startups operating in aviation, consumer and allied sectors such as travel & lifestyle, hospitality, and transportation," he said.

But Negi said that the venture capital firm will have an initial fund of Rs 7 crore. This has been revised as per the company’s latest exchange filing.

The airline's board has approved the investment which will be setup in the Special Economic Zone at Gujarat International Finance Tec-City, the airline said in an exchange filing with the stock exchanges.

Furthermore, the airline's board has also approved issuing corporate guarantees worth up to USD 996 million to secure the payment obligations of the aforesaid wholly-owned subsidiary.  (KNN Bureau)