Nov 14 (Reuters) - The ePlane Company, an Indian

electric air taxi startup, has raised $14 million as it sets its

sights on starting manned air taxi testing by mid-2025, it said

on Thursday.

The funds will be used for the development and certification

of its manned electric vertical takeoff and landing (eVTOL)

aircraft, ePlane, which raised the money in a Series B funding

round, co-led by Speciale Invest and Antares Ventures, according

to a statement.

The fundraise gives the Chennai-based firm a post-money

valuation of $46 million, up from $21.2 million in December

2021. So far, it has raised $19.85 million.

eVTOLs are seeking to revolutionize urban travel by

developing battery-powered aircraft that can take off and land

vertically, giving commuters a chance to avoid traffic snarls in

busy metropolitan areas.

Analysts say India is primed to be among the biggest markets

for the sector as its growing population looks for ways to avoid

heavy traffic in cities. eVTOL companies promise competitive

ticket prices, which can be cheaper than cab fares.

The global air taxi market was valued at $2.3 billion in

2023 and is projected to be worth $14 billion by end-2032, a

study

by Global Market Insights showed.

ePlane rival Sarla Aviation said it will cost passengers

about $21 to cover a near-38 kilometre stretch between Bengaluru

airport and an urban locality called eCity in 19 minutes, using

its flying taxis. Traditional ride-hailing cabs, such as Uber ( UBER )

, can take about 2 hours to cover the same distance and

cost around $30, factoring in surge pricing.

Last month, the Federal Aviation Administration, the U.S.

civil aviation regulator, finalized comprehensive training and

pilot certification rules for flying air taxis, addressing a key

hurdle to their deployment.

Only a handful of air taxi companies have received

certificates to begin commercial operations globally.

Boeing-backed Archer Aviation ( ACHR ) said earlier this

year it aims to begin its India operations by 2026. It has

partnered with InterGlobe Enterprises, which backs IndiGo

, India's top airline.