Startup funding: Scapia, which offers credit cards for travellers, has raised $23 million in its Series-A funding round, led by Elevation Capital and Flipkart Co-founder Binny Bansal’s 3STATE Ventures. Existing investors Matrix Partners India and Tanglin Venture Partners also participated in the round. The startup will deploy the capital to enhance its customer base, add more banking partners and further strengthen its product suite.
“The rise of fintech in India has been nothing short of revolutionary, democratising access to financial services and empowering millions. Among such innovations, Scapia stands out with its differentiated solutions tailored for travel, addressing a vital need for aspiring Indians. We are excited by Scapia’s progress in a short time and happy to continue our commitment to the company,” said Binny Bansal.
Launched earlier this year by Anil Goteti, former Senior Vice President for customer growth and monetisation at Flipkart, Scapia offers co-branded credit card, built in partnership with Federal Bank, with zero joining and annual fees along with zero-forex markup and unlimited domestic lounge access to its users on minimum monthly expenditure.
Users can opt from a wide selection of global airlines and over 5 lakh stays and hotels worldwide with easy cancellations, flexible rescheduling and affordable payment options like Travel Now, Pay Later, and 24/7 customer service.
Anil Goteti, Founder, Scapia, said, “This funding will fuel our efforts to grow our customer base, add more banking partners and strengthen our product suite. We are grateful to our new and existing investors who believe in our vision and are helping us deliver a compelling proposition to our customers.”
According to the data platform Statista, the value of the travel market in India was estimated at $75 billion in FY20 and is expected to grow to around $125 billion by FY27. Hotels and airlines made up a chunk of the market. The industry accounted for nearly 32 million jobs in 2020 and is projected to employ nearly 53 million by 2029.
Moreover, according to a survey by fintech company Paisabazaar, report by TOI in July this year, a fifth of personal loans taken in India was to pay travel bills.