In order to give potential investors upmost confidence and security in their investment, flypop has set up an escrow account with an independent UK solicitor.
The airline, which plans to operate a direct service between London Stansted airport and two of India's key cities, Amritsar in Punjab and Ahmedabad in Gujarat, has so far obtained commitments for £2 million in funds. It has also just finished its Seed Round raise of £100,000.
All new investment funds will be held in escrow until the service is approved for flying. It plans to raise a total of £6 million by the end of 2019.
By putting funds in escrow, it shows that a UK solicitor is in full control of the due diligence process. It also means the solicitor will undertake to return funds at the end of the year if the fund raising target isn't reached and the investor wants their money back.
(Nino) Navdip Singh Judge, CEO and founding partner of flypop, commented:
"We want to give Angel and Institutional investors every assurance that their investment is safe. By setting up an escrow account, the investment will be in the hands of an independent third party which means zero cash burn and that it can be returned easily."
flypop plans to offer convenient direct non-stop flights to India and South Asia with one-way fares starting from £150. Wet-lease licencing terms have already been agreed to lease Airbus A330 aircraft when ready.
flypop's management team has a wealth of experience working for airline and automotive companies including Ryanair, British Airways, Emirates, and Lotus F1.