Former Flipkart VP Anil Goteti Launches Scapia, a Travel-focused Credit Card and Rewards Platform
- ByStartupStory | June 15, 2023
Consumer tech veteran and former Senior Vice President of Flipkart, Anil Goteti, enters the fintech arena with Scapia, a credit card and travel rewards platform.
Based in Bengaluru, the startup introduces a digital credit card, in collaboration with the Federal Bank, catering specifically to travelers. Users of this card can accumulate Scapia coins as rewards for each transaction. These coins can subsequently be redeemed within the app for discounts on flight and hotel reservations worldwide. The credit card, operating on the VISA network, is globally accepted in over 150 countries. Real-time access to transaction details is conveniently available within the app.
Over the past few years, co-branded credit cards have gained significant popularity, with companies across various sectors, such as e-commerce platforms like Amazon and Flipkart, airlines, and aggregators, partnering with banks to launch their own credit cards. PwC’s study on popular co-brand cards in India highlights travel as the leading use case, followed by fuel, e-tail, and retail shopping.
Leading airlines such as Vistara and Air India have collaborated with Axis Bank and SBI, respectively, to introduce co-branded credit cards within the segment. Similarly, travel aggregators like MakeMyTrip and EaseMyTrip have partnered with ICICI Bank and Standard Chartered to offer co-branded credit cards to their customers.
Furthermore, even non-branded credit cards provide rewards to customers that can be utilized for various travel-related benefits such as flights, lounge services, and hotels on different travel websites. Some credit card issuers also offer their own apps, like HDFC Smartbuy platform, where these rewards can be redeemed. With his passion for travel, Goteti positions Scapia as an exceptional platform catering specifically to travelers, seamlessly integrating digital credit card services with travel rewards to enhance the overall travel experience.
“The entire value that we give to customers is very high, plus the whole experience. We are not restricted to a particular airline or a hotel for rewards redemption like other co-branded credit cards. Our lounge access benefit is not restricted, the forex markup is zero, there are no hidden charges, and so on,” Goteti told.
Although the founder did not disclose specific funding details, reliable sources indicate that the company, which operated in stealth mode since January of the previous year, has successfully secured investments from a group of investors. Through the in-house app, customers gain access to features like credit card spending tracking, as well as the opportunity to earn coins that can be redeemed for hotel and flight bookings within the same app.
The platform has seamlessly integrated APIs from various aggregators for hotel bookings and airlines to facilitate this service. Each transaction rewards users with 10% of the transaction value in the form of Scapia coins, with five coins equivalent to Rs 1. Additionally, a generous 20% reward is offered for every hotel stay and flight reservation made through the app.
Moreover, Scapia proudly announces its current absence of a joining fee and zero forex markup on international transactions, while offering unlimited access to domestic lounges and a convenient no-cost EMI option. The platform generates revenue through its co-branded partnership with the Federal Bank, relying on a revenue sharing arrangement, as well as fees from partner brands on bookings.
While Scapia competes directly with Cred, which enables users to redeem their coins for travel bookings within the app (Cred Escapes), Scapia distinguishes itself by providing individual co-branded credit cards alongside its comprehensive travel redemption services.
Scapia marks Goteti’s second entrepreneurial venture following his departure from Flipkart in 2020. Before this, he co-founded Protonn, a digital solutions startup, alongside his colleague Mausam Bhatt. Protonn offered a platform for self-employed professionals, including lawyers, graphic designers, and nutritionists, enabling them to establish an online presence, create videos, conduct live sessions, generate payment links, and monitor their performance.
However, despite raising funds with support from Matrix Partners India, 021 Capital, Tanglin Venture Partners, and notable angel investors like Binny Bansal (Flipkart), Kalyan Krishnamurthy (Flipkart), Neeraj Arora (WhatsApp), Sujeet Kumar (Udaan), and Kunal Shah (CRED), the venture had to cease operations within a year.
“It (startup) wasn’t going according to the plans. It was where the market was peaking at that point of time, but we did the right thing by returning the money to the investors. I took a break and the discovery process during that break led to Scapia,”the founder said.
Speaking about the failure of his first venture and building a new one, Goteti said,“When you want to leave a legacy and build something exciting, which serves millions of customers, everything will not be hunky dory. There will be ups and downs. You spend time in the industry and learn how to take things in your stride. Is it disappointing, yes! But you don’t think about the failures, but the larger vision and what excites you.”
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