Travel fintech specialist Scapia has raised $40 million in Series B funding.
The investment in the India-based company was led by Peak XV Partners with existing investors, Elevation Capital, Z47 and 3STATE Capital also participating.
The funding will go towards boosting the team, enhancing its product offerings and accelerating growth plans, Scapia said in a statement.
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Scapia offers a co-branded credit card targeting Gen Z and millennials which offers rewards, Scapia coins, which can be redeemed for flights, hotel stays and other products. Users earn 10% rewards on all transactions, rising to 20% for travel bookings made via the Scapia app.
"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.
“This has rapidly positioned Scapia as the preferred co-branded card and travel app for Gen Z and millennials in India. With the support of Peak XV and our existing investors, we are poised to accelerate our product roadmap and deliver innovative solutions to travelers faster than ever before.”
"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,” said Tejeshwi Sharma, managing director of Peak XV.
“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.”
Gen Z and millennials account for 50% of credit card issuance in India, said Mridul Arora, partner at Elevation Capital, which led a $23 million Series A investment in Scapia in late 2023. The startup also raised $9 million in seed funding in June 2023.
"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 and annual fees, no forex markup and meaningful rewards that enhance the travel experience,” he said.
Scapia added visa services and domestic rail booking to its offering earlier this year.