TravelTech

Scapia Secures $23M in Series A Funding to Fuel Expansion and Enhance Customer Experience

• ByStartupStory     |    November 21, 2023

Bengaluru-based traveltech startup Scapia, founded by former Flipkart executive Anil Goteti, has successfully raised $23 million in its Series A funding round. The funding was co-led by Elevation Capital and 3STATE Ventures, with participation from existing investors including Matrix Partners India and Tanglin Venture Partners. This brings Scapia’s total funding to $32 million.

Anil Goteti, in a conversation with Inc42, disclosed that the new funds will be utilized for marketing initiatives to enhance product awareness and expand the customer base. The startup also plans to establish more partnerships, offering customers the flexibility to choose their preferred banks. Additionally, funds will be directed towards product development to improve the overall customer experience.

Scapia, founded in 2022 by Anil Goteti, a former senior vice president of Flipkart, introduced its co-branded credit card in partnership with Federal Bank just five months ago. The credit card turns everyday expenses into travel rewards, providing benefits such as zero-forex markup and unlimited domestic lounge access.

Anil Goteti explained that Scapia targets individuals aged 25 to 40 with a passion for travel. The startup leverages customers’ daily expenditures to accumulate Scapia coins, which can be converted into rewards for flights and hotel stays. The credit card has been shipped to over 7,500 pin codes within five months of launch, with 60% of customers from top 30 cities and the remaining 40% from various locations across India.

Scapia has quickly gained traction, with 75% of its customer base being salaried individuals and the remaining 25% being self-employed. The average monthly salary for the salaried group is INR 2 lakh. An optimistic outlook is supported by the anticipation of credit card growth from 90 million to 250 million in the next 4-5 years in India.

Looking ahead, Scapia plans to focus on enhancing customer experience and aims to increase its team size from 60 to around 100 by the end of 2024. The startup’s growth aligns with a significant trend noted by IndiaLends, revealing a five-fold increase in applications for travel-specific credit cards in the past year. As India’s GDP and disposable income rise, services like Scapia are poised to tap into a substantial Total Addressable Market (TAM).

 

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