Scapia (a fintech startup specializing in travel-focused credit cards) has raised $40 million (~ ₹342 crore) in a Series B funding round led by Peak XV Partners. The round also saw participation from existing investors, including Elevation Capital, Z47, and 3STATE Capital. This latest investment brings Scapia’s total funding to around $70 million (~ ₹598 crore).
The newly received funds will be utilized to expand Scapia’s customer base, enhance product offerings, integrate artificial intelligence (AI), and strengthen its technological infrastructure.
“Over the past three years, we have focused on creating exceptional travel products, forging strong banking partnerships, and building a talented team. This has rapidly positioned Scapia as the preferred co-branded card and travel app for Gen Z and Millennials in India,” Anil Goteti, Founder & CEO of Scapia said in his statement.
Founded in 2022 by Goteti (a former senior executive at Flipkart), the Bangalore-based Scapia offers a co-branded credit card in partnership with the Federal Bank. The company claims that the card offers benefits like zero joining and annual fees, no foreign exchange markup, and complimentary unlimited domestic lounge access.
In fact, cardholders earn 10% rewards (in the form of Scapia Coins) on all transactions and 20% rewards on travel bookings made through Scapia. Additionally, the company’s app facilitates bookings for global airlines, over 500,000 hotel properties, visas for 45 countries, and domestic transport options. Recently, Scapia launched a RuPay variant of its co-branded card to capture UPI-based spending and broaden its reach within India’s digital payments ecosystem.
The funding comes at a time when the fintech industry, especially in the travel credit card sector, is facing several challenges and has become highly competitive in recent years. In fact, Scapia competes with established players like MakeMyTrip-ICICI Bank and EaseMyTrip-Standard Chartered, which offer co-branded credit cards with travel rewards. Also, some popular Indian airlines like Vistara and Air India have partnered with banks like Axis Bank and SBI to provide similar offerings.
In terms of numbers, co-branded credit cards are estimated to account for over 25% of total credit card issuances by the fiscal year 2028, clearly up from 12-15% in FY24. Within this segment, the travel sector holds an 8-10% market share, reflecting a growing consumer interest in travel-related financial products.
“Millennials and Gen Z are turning travel into a guilt-free, all-pleasure experience, which is setting the stage for rapid growth in the travel industry in India. Scapia is uniquely positioned to fuel this revolution by merging a booming travel market with an untapped credit card market to offer a unique and delightful experience to this customer base,” Tejeshwi Sharma (MD, Peak XV) stated.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
