Former Flipkart Exec Anil Goteti’s Fintech Startup Scapia Bags $23 Mn From Elevation Capital, 3STATE Ventures

Bengaluru-based travel fintech startup Scapia, floated by former Flipkart executive Anil Goteti, has secured $23 Mn as a part of its Series A funding exercise co-led by Elevation Capital and Binny Bansal’s 3STATE Ventures.

The round also saw participation from existing investors such as Matrix Partners India and Tanglin Venture Partners.

With this, Scapia’s total funding stands at $32 Mn till date.

Speaking to Inc42, Goteti said that the startup will use the fresh funds for marketing efforts aimed at expanding awareness of the product and increasing the customer base. Besides, it plans to forge more partnerships, providing customers with the flexibility to choose their preferred banks. The funds will also be deployed for product development to enhance the overall customer experience.

Earlier this year, Scapia raised $9 Mn in a seed round led by Matrix Partners India. The round also saw participation from Tanglin Venture Partners, Binny Bansal’s 3STATE Ventures and angel investors Keki Mistry, CEO of HDFC Ltd.

Founded by Goteti, former senior vice president of Flipkart, in 2022, Scapia launched its co-branded credit card five months back in partnership with Federal Bank. The startup turns a customer’s everyday expense into travel rewards with its co-branded card. The product offers various rewards including a zero-forex markup, unlimited domestic lounge access, among others.

“Our target demographic comprises individuals aged 25 to 40 who have a passion for traveling, exploring, and experiencing different parts of the world. We facilitate this by leveraging their daily expenditures—something everyone incurs regularly. Whether it’s domestic or international travel, which occurs a few times a year, we assist customers in accumulating Scapia coins through their everyday expenses. These coins can then be converted into rewards for flights and hotel stays. Furthermore, we provide travel perks such as lounge access, for those who spend a minimum of INR 5000,” Goteti said.

The Scapia credit card was introduced in partnership with Federal Bank and is based on the VISA network. Scapia has also built a travel platform within the app to enable customers to instantly redeem their coins for flight and hotel bookings. 

Within five months of launch, Scapia has shipped its credit cards to more than 7,500 pin codes, Goteti said. 60% of its customers are coming currently from top 30 cities in India and while the remaining 40% hail from various locations across the country.

Of its customer base, 75% are salaried individuals, while the remaining 25% are self-employed. The average monthly salary for the salaried group is INR 2 Lakh.

India currently has nearly 90 Mn cards, and there is an anticipated growth to 250 mn cards in the next 4-5 years. The credit card penetration rate is currently low, but with the rise of GDP and disposable income, there is a significant Total Addressable Market (TAM) for services like Scapia, Goteti said.

Going forward, while Scapia will focus highly on making its customer experience better, it also plans to increase team size from 60 to around 100 by the end of 2024. 

According to a study conducted by IndiaLends, an online marketplace for personal loans and credit cards, there has been a noteworthy five-fold increase in applications for travel-specific credit cards in the past year. With a customer base exceeding 17 Mn members, IndiaLends observed that 50% of all credit card applications were for travel-focused credit cards, particularly during the 2022 travel season.