According to reports, Scapia, the travel credit card startup launched by Flipkart’s former senior vice president Anil Goteti, has raised $40 million in a Series B funding round led by Peak XV Partners. Existing investors Elevation Capital, Z47, and 3STATE Capital also participated in the round.

The funds will be used to expand the team, enhance product offerings, and integrate AI-driven solutions, says Anil.

"We are going to invest a lot in product development. We are going to invest a lot in AI as well. A lot of companies are experimenting and exploring with AI. We have a bunch of ideas that we are going to try out as well and see how that plays out for customers," says Anil.

"I am quite open to good acquisitions and teams that have really good talent or ideas but they are looking for a distribution muscle like ours or a home where they can actually take their ideas to a larger audience," adds Anil.

Scapia, based in Bengaluru, was established in June 2023. It provides customers with a co-branded credit card and an app to convert their everyday spending into rewards. These rewards are converted into Scapia coins, which can be utilized to reserve hotels and flights on the internet.

Scapia’s co-branded card features no joining or annual fees, providing a zero-forex markup and unlimited domestic lounge access for users with a minimum monthly spending.

“With Peak XV's support and our existing investors, we are set to accelerate our product roadmap and bring innovative travel solutions to consumers faster than ever,” says Anil.

Investors are recognizing an increasing opportunity in the travel fintech sector, as Gen Z and millennials make up 50 percent of all credit card issuances in India.

According to Peak XV managing director Tejeshwi Sharma, Scapia is strategically poised to seize a considerable portion of this growing market.

In June 2023, Scapia secured $9 million in its initial funding round, which was spearheaded by Matrix Partners. In November of that year, the company secured $23 million in a Series A funding round spearheaded by Elevation Capital and Binny Bansal's fund, 3State Ventures.

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"We had a Visa co-brand variant where now we have also a RuPay variant. Customers who want to use our product on UPI can also get to make their transactions and spends on credit rather than directly on debit," Anil adds.