Bengaluru-based Traveltech startup Scapia, founded by former Flipkart executive Anil Goteti, has marked a significant milestone by securing $23 million in its recent Series A funding round. Co-led by Elevation Capital and 3STATE Ventures, the funding also witnessed continued support from existing investors, including Matrix Partners India and Tanglin Venture Partners. With this injection of capital, Scapia’s total funding reaches an impressive $32 million, setting the stage for the startup’s ambitious plans in the travel credit card sector.
Setting Sail: An Overview of Scapia
Founded in 2022, Scapia has quickly positioned itself as a key player in the travel credit card landscape. Anil Goteti, leveraging his experience as a former senior vice president at Flipkart, embarked on a journey to revolutionize the way individuals aged 25 to 40 experience travel. Scapia’s unique proposition revolves around turning everyday expenses into travel rewards through its co-branded credit card.
Unpacking the Funding
The Series A funding, co-led by Elevation Capital and 3STATE Ventures, provides Scapia with not only a significant financial boost but also an endorsement of its vision and potential in the market. The participation of existing investors further underscores the confidence in Scapia’s trajectory. Anil Goteti, in an exclusive conversation with Inc42, shed light on how the newly acquired funds would be strategically utilized to propel Scapia’s growth.
Navigating the Future: Utilization of Funds
Scapia’s strategic roadmap involves deploying the freshly acquired funds in several key areas. A major focus will be on marketing initiatives geared towards enhancing product awareness and expanding the customer base. Anil Goteti emphasized the importance of establishing more partnerships to provide customers with increased flexibility in choosing their preferred banks. Additionally, a significant portion of the funds will be channeled into product development, aiming to elevate the overall customer experience.
The Scapia Experience: Unraveling the Credit Card Offering
Scapia’s credit card, introduced in collaboration with Federal Bank just five months ago, introduces a novel approach to travel rewards. The card, designed for individuals with a passion for travel, offers perks such as zero-forex markup and unlimited domestic lounge access. The mechanism is simple yet powerful: customers accumulate Scapia coins through daily expenditures, which can then be converted into rewards for flights and hotel stays.
Rapid Ascension: Customer Base and Geographic Reach
In a remarkably short span, Scapia has garnered notable traction, shipping its credit card to over 7,500 pin codes within five months of launch. Notably, 60% of Scapia’s customers hail from the top 30 cities, showcasing a broad appeal that transcends geographical boundaries. The startup has successfully tapped into diverse locations across India, reflecting a widespread resonance with its innovative credit card offering.
Demographics and User Profiles
Scapia’s success story is further underscored by the composition of its customer base. An impressive 75% of Scapia’s customers fall within the salaried individuals category, while the remaining 25% are self-employed. The average monthly salary for the salaried group stands at INR 2 lakh, pointing to a robust user base with significant spending capacity.
Riding the Wave: Anticipating Credit Card Growth
Anil Goteti, optimistic about Scapia’s trajectory, aligns the startup’s growth with a broader trend in India’s credit card landscape. Anticipating a surge in credit card adoption from 90 million to 250 million in the next 4-5 years, Scapia is well-positioned to ride this wave of growth. The startup’s unique value proposition, coupled with a proactive approach to market trends, positions it as a key player in the evolving fintech landscape.
Future Outlook: Enhancing Customer Experience and Team Expansion
As Scapia charts its course for the future, a primary focus lies on elevating the customer experience. The startup aims to augment its product offering, ensuring that each interaction with Scapia’s credit card is seamless and rewarding for users. Additionally, Scapia plans to expand its team size from the current 60 to approximately 100 by the end of 2024, further fortifying its capabilities to meet the growing demands of the market.
Industry Trends: A Rising Appetite for Travel-Specific Credit Cards
Scapia’s journey intersects with a noteworthy trend observed in the Indian fintech landscape. IndiaLends’ data reveals a substantial five-fold increase in applications for travel-specific credit cards in the past year. As India’s GDP and disposable income witness an upward trajectory, services like Scapia are strategically positioned to tap into a substantial Total Addressable Market (TAM).
Scapia’s Series A funding marks a pivotal moment in the startup’s evolution, signifying not only financial backing but a resounding endorsement of its innovative approach to travel credit cards. With a clear vision, strategic allocation of funds, and a focus on enhancing the customer experience, Scapia is poised for sustained growth in a dynamic and evolving fintech ecosystem. As the travel credit card landscape continues to evolve, Scapia stands out as a beacon of innovation, reshaping the way individuals experience and indulge in their passion for travel.