Bengaluru-based travel fintech firm Scapia has secured $9 million in a seed funding round led by Matrix Partners India. The startup will utilize the funding to expand its operations and invest in technological capabilities.
Other participants in the funding round included Tanglin Venture Partners, Binny Bansal’s 3STATE Ventures, and notable angel investors like Keki Mistry, the CEO of HDFC Ltd.
Scapia’s Co-Branded Credit Card and Rewards System
Scapia, founded by Anil Goteti, a former senior vice president at Flipkart, offers a co-branded credit card and an accompanying app that allows customers to convert their everyday expenses into travel rewards.
The co-branded card, developed in partnership with Federal Bank, provides various rewards such as a zero-forex markup, unlimited domestic lounge access, and zero joining and annual fees.
Operating on the Visa network, the card offers an impressive 10 percent reward on every transaction converted into Scapia coins, as stated in the company’s press release.
To enhance the travel experience for its customers, Scapia has built a travel platform within its app. Users can instantly redeem their Scapia coins for flight and hotel bookings through the platform.
The company claims to offer a wide selection of options from global airlines and over 500,000 stays and hotels worldwide. Additionally, Scapia provides affordable payment options such as “travel now, pay later,” making travel more accessible to its users.
Scapia’s Growth Potential and Founder’s Vision
With less than 5 percent of the population currently owning credit cards in India, Scapia sees a massive opportunity in the market.
The startup aims to cater to the travel interests of millennials by offering a primary card that effectively rewards them with travel benefits and perks. Goteti, the founder of Scapia, envisions a delightful app that prioritizes transparency and trustworthy service for its users.
India will have 200 million credit cards in circulation by 2030. Scapia is well-positioned to tap into this growing market.
Revenue Model and Competition
Scapia’s revenue model is two-fold. Firstly, the company earns a commission from hotels and airlines when customers book through its app.
Secondly, Scapia receives a commission from its co-partnered bank, Federal Bank, for acquiring more customers. The startup faces competition from other fintech firms in the market, including Niyo, OneCard, and Uni, who also target the travel and credit card space.
As Scapia raises $9 million in seed funding, the startup is poised to accelerate its growth and bolster its technological capabilities. With its unique rewards system, user-friendly app, and focus on the travel aspirations of millennials, Scapia aims to carve a niche in the Indian travel fintech industry.