Scapia Raises $40Mn In Series B Round Led By Peak XV Partners

Travel-focused fintech startup Scapia has raised $40 million in an equity funding round led by Peak XV Partners.

Existing investors Elevation Capital, Z47 and 3STATE Capital also took part in this round.

The startup will use the funds to improve its travel and financial services, boost AI capabilities and grow its team.  

Scapia is making a comeback after nearly shutting down due to a business slowdown. Its operations were affected when the RBI barred its partner, Federal Bank, from issuing co-branded credit cards on March 13. This also impacted other fintechs like OneCard which relied on Federal Bank for customer acquisitions.  

However, on March 18, Federal Bank received RBI approval to restart the service, and Scapia had already begun onboarding customers from late February.  

The company aims to attract young Indian travelers by offering a credit card that rewards spending on holidays.

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"Over the past three years, we have focused on creating exceptional travel products, forging strong banking partnerships and building a talented team. With the support of Peak XV and our existing investors, we are poised to accelerate our product roadmap and deliver innovative solutions to travellers faster than ever before, " said, Anil Goteti, Founder and CEO of Scapia.

"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. Scapia's product-market fit positions them perfectly to capture an outsized share of this growing segment," said Mridul Arora, Partner at Elevation Capital. 

"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," said Tejeshwi Sharma, Managing Director at Peak XV Partners.

About Scapia

Founded in 2022 by Anil Goteti, Scapia's card comes with benefits like no joining or annual fees, free lounge access and other perks.  

The app also provides pay-later options for travel bookings, hotel stays and visas in over 45 countries.

Users earn 10% rewards on all purchases and 20% on travel bookings made through the Scapia app. In the past year, Scapia's customers have used its co-branded card to visit over 100 countries.

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