Scapia, a travel fintech startup, raised $40 million in a Series B funding round led by Peak XV Partners, with participation from Elevation Capital, Z47 (formerly Matrix Partners India), and 3STATE Ventures. The company offers a co-branded credit card in partnership with Federal Bank and allows users to book flights, trains, stays, and other travel experiences on its app.
The fresh funds will be used in brand marketing, product development, including the use of AI in customer services and other business operations, and to expand its current team of about 100 employees by at least 50% in the next year, said Anil Goteti, founder and CEO.
He launched the Scapia co-branded credit card in June 2023, and now plans to onboard two more banking partners. Later that year, the company raised $23 million in funding from investors such as Elevation Capital and 3STATE Ventures, an investment firm of Flipkart co-founder Binny Bansal.
“Our core focus is to work on the co-branded credit cards, but over the next few years, we may add other financial services,” Goteti said, in an interaction with Fe. Goteti, a former senior vice president at Flipkart, had previously worked as a consultant at McKinsey.
His company largely caters to the millennials and Gen Zs, who now account for about 50% of the country’s credit card issuance. Scapia’s card comes with zero joining and annual fees, and offers a zero-forex markup and other travel-related benefits.
Customers use our product year-round to earn rewards, Goteti explains, adding that about 80-85% of the transactions are non-travel related, allowing users to accumulate points throughout the year. While travelling, customers enjoy perks like lounge access, zero forex fees, and cheaper tickets.
“The travel fintech space represents a significant opportunity, especially considering that Gen Z and millennials now account for 50% of all credit card issuance in India, pointing to a rapidly growing, digital-first consumer base that will fuel an $80–100 billion annual revenue opportunity by 2030,” said Mridul Arora, Partner, Elevation Capital.
“Scapia’s product-market fit positions them perfectly to capture an outsized share of this growing segment,” he added. Other startups in the travel fintech segment include Niyo Global, which offers co-branded debit and credit cards with State Bank of Mauritius (SBM) India and debit cards in partnership with DCB Bank.