Bengaluru-based travel fintech startup, Scapia, has secured a significant $40 million in a Series B funding round, led by Peak XV Partners, with participation from Elevation Capital, Z47, and 3STATE Capital. This substantial investment underscores the burgeoning demand for travel-centric financial products among India’s younger demographic, positioning Scapia for accelerated growth in a dynamic market.
Fueling Expansion and Innovation
The fresh capital injection will empower Scapia to amplify its team, enhance its product offerings, integrate artificial intelligence across its operations, and scale its platform to meet the escalating demand. Anil Goteti, the founder and CEO, a former Flipkart executive, emphasized the company’s commitment to delivering innovative solutions to travelers at an unprecedented pace. “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,” Goteti stated.
A Credit Card Tailored for the Jet-Set Generation
Scapia’s flagship product, a co-branded credit card developed in partnership with Federal Bank, is designed to cater to the unique needs of Gen Z and millennial travelers. This card boasts zero joining or annual fees, no forex markup, and attractive perks such as unlimited domestic lounge access and airport privileges based on monthly spending thresholds. Furthermore, cardholders can earn 10% rewards on everyday purchases and a generous 20% on travel bookings made through the Scapia platform. The company reports that its cardholders have already traveled to over 100 countries within the past year, showcasing the card’s widespread appeal.
Capitalizing on the Booming Travel Market
Tejeshwi Sharma, Managing Director at Peak XV, highlighted the shift in travel behavior among younger generations. “Millennials and Gen Z are turning travel into a guilt-free, all-pleasure experience,” Sharma observed. “Scapia is uniquely positioned to fuel this revolution by merging a booming travel market with an untapped credit card market.” The startup’s app simplifies travel booking and rewards redemption across global airlines, a vast network of hotel properties, visa applications, domestic transport, and exclusive “Scapia Unmapped” experiences. It also offers flexible financing options like “Travel Now, Pay Later” and 24/7 customer support.
Expanding Reach with RuPay Integration
To broaden its reach within India’s digital payments ecosystem, Scapia recently launched a RuPay variant of its co-branded card in collaboration with Federal Bank. This strategic move allows the startup to capture UPI-based spending, further solidifying its presence in the market.
Driving the Future of Travel Fintech
Vikram Vaidyanathan, Managing Director at Z47, praised Scapia for “transforming how the next generation of Indians travel and spend on experiences,” citing innovations like airport privileges and a seamless booking-to-reward journey.
Mridul Arora, Partner at Elevation Capital, underscored the significant opportunity within the travel fintech sector. “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,” Arora explained. “Scapia’s product-market fit positions them perfectly to capture an outsized share of this growing segment. Their co-branded card has tapped into exactly what the consumers want—zero joining & annual fees, no forex markup, and meaningful rewards that enhance the travel experience. We’re confident in Scapia’s continued momentum and pleased to strengthen our partnership with Anil and the team.”
This latest funding round marks a pivotal moment for Scapia, solidifying its position as a frontrunner in the evolving landscape of travel fintech, catering to the unique demands of India’s digitally savvy younger generation.
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Scapia’s $40M funding highlights the increasing demand for travel-friendly financialScapia Funding Discussion solutions. Their focus on AI integration and expanding travel perks could significantly enhance the user experience. It’ll be interesting to see how they innovate further to stay ahead in the competitive travel fintech space!