Scapia secures $40M in Series B round led by Peak XV Partners
Scapia will use the funding to accelerate product development in travel and financial services, enhance AI capabilities, and expand its team.
Travel-focused fintech Scapia on Thursday said it raised $40 million in a Series B funding round led by Peak XV Partners, with participation from existing investors Elevation Capital, Z47, and 3STATE Capital.
The startup will use the funding to accelerate product development in travel and financial services, enhance AI capabilities, and expand its team, it said in a statement.
"Over the past three years, we have focused on creating exceptional travel products, forging strong banking partnerships, and building a talented team," said Anil Goteti, Founder and CEO of Scapia. "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," he added.
Scapia’s co-branded card, developed with Federal Bank, offers zero joining and annual fees, no forex markup, and complimentary unlimited domestic lounge access based on qualifying monthly spend.
Users receive 10% rewards on all transactions, with 20% rewards on travel bookings made through Scapia’s app. Over the past year, Scapia said its customers have travelled to over 100 countries using its co-branded card.
"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.
Recently, Scapia launched a RuPay variant of its co-branded card to capture UPI-based spends.
In January last year, The CapTable reported that Scapia had outraged users by slashing credit limits drastically. Sources said only inactive users have been affected, and it was a part of any bank's periodic review of credit products.
Edited by Suman Singh