New Delhi, April 3 -- Travel fintech startup Scapia said it has raised $40 million (Rs 342.6 crore) in its Series B funding round, led by Peak XV Partners, with participation from existing investors such as Elevation Capital, Z47, and Binny Bansal's 3STATE Capital.

The company plans to use the funds to strengthen its team, enhance product offerings, leverage AI, and accelerate its growth.

Scapia specializes in co-branded credit cards designed primarily for travel, catering to the needs of Gen Z and millennials. The card offers various benefits and is tailored for young, tech-savvy travelers.

"Over the past three years, we have focused on creating exceptional travel products, forging strong banking partnerships, and building a talented team. This has rapidly positioned Scapia as the preferred co-branded card and travel app for Gen Z and millennials in India," said Anil Goteti, founder and chief executive officer of Scapia.

The card comes with no joining or annual fees, no foreign exchange markup, and rewards that enhance the travel experience.

"Millennials and Gen Z are turning travel into a guilt-free, all-pleasure experience, which is setting the stage for rapid growth in the travel industry in India. Scapia is uniquely positioned to fuel this revolution by merging a booming travel market with an untapped credit card market to offer a unique and delightful experience to this customer base," said Tejeshwi Sharma, managing director at Peak XV.

Developed in partnership with Federal Bank, Scapia's co-branded card offers complimentary unlimited domestic lounge access and airport privileges based on qualifying monthly spend.

Cardholders receive a 10% reward on all transactions, with an enhanced 20% reward on travel bookings made through Scapia. The app also stands out for its competitive pricing, customer-friendly cancellation and rescheduling policies, and flexible payment options, including the "travel now, pay later" feature.

In 2023, Scapia had raised $23 million in its Series A round from VC firms, including Elevation Capital, 3STATE Ventures, Z47 (formerly Matrix Partners India), and Tanglin Venture Partners. Earlier in 2023, it also secured $9 million in seed funding from Z47, Tanglin Venture Partners, 3STATE Ventures, and angel investor Keki Mistry of HDFC Ltd.

Published by HT Digital Content Services with permission from VC Circle.