Scapia

Scapia has swiftly positioned itself as a travel-focused fintech innovator in India’s rapidly evolving credit card and digital payments landscape. The company vision to make travel more accessible and rewarding for India’s burgeoning base of Gen Z and millennial consumers. Scapia’s core offering is a co-branded credit card, developed in partnership with Federal Bank, that transforms everyday spending into travel rewards—delivering a seamless, integrated experience through its proprietary app. Operating at the intersection of financial services and travel technology, Scapia’s business lines encompass credit card issuance, a travel booking platform and a suite of value-added services such as airport lounge access and travel insurance.

 Core Products and Services

• Co-branded Credit Card: Issued in partnership with Federal Bank, offering zero joining/annual fees, zero forex markup, unlimited domestic lounge access and 10% rewards on all spends, minted as Scapia Coins.

• Integrated Travel Platform: In-app booking for flights, hotels (over 500,000 stays worldwide), buses, trains and visa services, with best-price guarantees, flexible rescheduling and easy cancellations.

• Rewards Ecosystem: Scapia Coins can be redeemed instantly for travel bookings, creating a closed-loop rewards system that drives card usage and customer loyalty.

• Travel Privileges: Complimentary travel insurance, airport lounge access (via Collinson partnership) and exclusive travel deals.

• Flexible Payment Options: “Travel Now, Pay Later” and 24/7 customer support for seamless travel planning and management.

Business Model & Revenue Streams

• Revenue Generation: Scapia’s primary revenue streams include interchange fees (1.5–3.5% per transaction), interest on revolving credit (20–25% APR), merchant commissions from travel bookings (e.g., 15% on hotel bookings) and ancillary fees such as late payment and EMI processing charges.

• Revenue Mix: While the company does not charge joining or annual fees, the majority of revenue is derived from interchange and merchant commissions, with travel bookings and value-added services contributing a growing share.

• Customer Segmentation: Scapia operates a B2C model, targeting frequent travelers, Gen Z and millennials—segments that now account for 50% of all credit card issuance in India. Notably, 40% of Scapia’s user base is from Tier 2/3 cities, reflecting strong penetration beyond metros.

• Geographic Reach: Active across 7,500+ pin codes, with a focus on both urban and emerging markets.

 Top Clients & Partnerships

• Federal Bank: Strategic banking partner for co-branded credit card issuance, enabling Scapia to focus on product and customer experience.

• Collinson Group: Provides Scapia cardholders with unlimited access to 60+ premium airport lounges across India, enhancing the travel value proposition.

• Global Travel Networks: Partnerships with airlines, hotel chains, and booking platforms to offer exclusive deals and earn commissions on bookings.

• Venture Investors: Backed by Peak XV Partners, Elevation Capital, Matrix Partners, 3STATE Ventures, Tanglin Venture Partners and Z47, providing both capital and strategic guidance.

• Diversification Initiatives: The platform’s broad travel and financial services ecosystem, combined with a growing network of partners, mitigates client concentration risk and supports scalable growtth.

Future Outlook & Strategic Priorities

• Expansion of travel offerings (recently added visas and train bookings) and continuous enhancement of the integrated travel platform.

• Aggressive customer acquisition in Tier 2/3 cities and among digital-first consumers, leveraging India’s projected 200 million credit card market by 2030.

• Investment in AI-driven personalization, product innovation and new payment features to deepen engagement and wallet share.

• Regulatory scrutiny of fintech and credit card practices, especially around data privacy and lending standards (reflecting recent market trends).