Scapia, the travel credit card startup launched by Flipkart’s former senior vice president Anil Goteti, has raised $40 million in a Series B funding round led by Peak XV Partners. Existing investors Elevation Capital, Z47, and 3STATE Capital also participated in the round, the firm said on April 3.
Moneycontrol was the first to report on the fundraise plans on January 13.
The funds will be used to expand team, enhance product offerings, and integrate AI-driven solutions, Goteti told Moneycontrol.
"We are going to invest a lot in product development. We are going to invest a lot in AI as well. A lot of companies are experimenting and exploring with AI. We have a bunch of ideas that we are going to try out as well and see how that plays out for customers," Goteti added.
Scapia is also open to acquiring companies that add synergy.
"I am actually quite open to good acquisitions and teams that have really good talent or ideas but they are looking for a distribution muscle like ours or a home where they can actually take their ideas to a larger audience," Goteti said.
The Bengaluru-headquartered Scapia was launched in June 2023. It offers a co-branded credit card and an app to customers to turn their daily expenses into rewards. These rewards turn into Scapia coins, which can be used to book hotels and flights online.
Scapia’s co-branded card comes with zero joining and annual fees, offering a zero-forex markup and unlimited domestic lounge access to its users on minimum monthly expenditure.
Scapia offers a co-branded credit card in partnership with Federal Bank and is looking to add more banking partners.
“With Peak XV's support and our existing investors, we are set to accelerate our product roadmap and bring innovative travel solutions to consumers faster than ever,” Goteti said.
Investors see a growing opportunity in the travel fintech space, with Gen Z and millennials now accounting for 50 percent of all credit card issuances in India.
Scapia is well-positioned to capture a significant share of this expanding market, Peak XV managing director Tejeshwi Sharma said.
In June 2023, Scapia raised $9 million in its seed funding round led by Matrix Partners. In November that year, the firm raised $23 million in Series A funding round led by Elevation Capital and Binny Bansal’s fund 3State Ventures.
Also Read: Flipkart veteran Anil Goteti launches Gen Z and Millenial-focussed fintech startup
"We had a Visa co-brand variant where now we have also a RuPay variant. Customers who want to use our product on UPI can also get to make their transactions and spends on credit rather than directly on debit," Goteti said.
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