Credit card fintech Scapia raises $40 million in Series B funding round

Co-branded credit card fintech Scapia on Thursday raised $40 million in a Series B funding round led by Peak XV Partners, along with participation from existing investors Elevation Capital, Z47, and 3STATE Capital.

 

The company plans to enhance its product offerings, strengthen its team, and accelerate its growth plans.

 

The fintech firm had raised $23 million in a Series A funding round led by Elevation Capital and 3State Ventures in 2023.

 

The Bengaluru-based fintech firm has raised a Series B round over a year after the Reserve Bank of India (RBI) barred Federal Bank – the company’s credit card partner – from issuing co-branded credit cards to new customers.

 

 

The fintech company has restarted the co-branded card offering since early this year.

 

“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 chief executive officer (CEO), Scapia.

 

Goteti founded the company in 2022.

 

Its co-branded card offers zero joining and annual fees, no forex markup, and complimentary unlimited domestic lounge access and airport benefits based on monthly spends.

 

“The travel fintech space represents a significant opportunity, especially considering that Gen Z and millennials now account for 50 per cent 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, Elevation Capital.

 

Scapia cardholders are entitled to 10 per cent rewards on all transactions, and a 20 per cent reward on travel bookings made through the Scapia application.

 

It enables bookings and reward redemptions across global airlines, more than 5,00,000 hotel properties, visas for 45 countries, and domestic transport options.

 

“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 (MD), Peak XV.