Scapia Raises $40 Million in Series B Funding to Boost Travel Fintech Innovation

Scapia has successfully raised $40 million in a Series B funding round, with Peak XV leading the investment shortly after FY25. This latest funding reflects investors’ confidence in the company’s growth prospects. The fundraising event follows an impressive growth of over 70% year-on-year in scale, yet the company still grapples with ongoing losses.

In FY25, Scapia’s operating revenue soared to Rs 29 crore, up from Rs 17 crore in FY24, as detailed in its financial statements obtained from the Registrar of Companies (RoC). Founded by Anil Goteti, Scapia operates as a fintech-travel platform that provides a lifetime-free credit card enriched with travel rewards. The company generates income through interchange fees, interest on EMIs, and commissions from travel bookings.

Revenue Breakdown of Scapia’s Travel Fintech Operations

Service income remains the largest source of income for Scapia, accounting for 82.8% of operating revenue. This segment saw a significant increase of 60%, reaching Rs 24 crore in FY25. Additionally, revenue from convenience fees more than tripled to Rs 3.4 crore, while commission income rose by 71.4% to Rs 1.2 crore during the same period.

Cost Analysis for Scapia’s Financial Year

In terms of expenditures, employee benefit expenses emerged as the largest category, representing nearly half of total costs. These expenses surged by 71.8%, climbing to Rs 61 crore in FY25 from Rs 35.5 crore in FY24. On the other hand, advertising costs saw a sharp decline of 35%, reducing to Rs 32 crore in FY25 from Rs 49.5 crore in FY24. Other operating costs, including lounge service expenses, remained stable at Rs 7 crore, while subscription costs rose by 17% to Rs 7 crore. Customer support costs increased slightly to Rs 4 crore, and other expenses escalated by 21% to Rs 12.5 crore.

Overall, Scapia’s total expenses grew by 10%, reaching Rs 123.5 crore in FY25 compared to Rs 112 crore in FY24. For more detailed expense breakdowns, one can refer to various industry sources.

Financial Performance and Balance Sheet Strengthening

With Scapia’s revenue growth outpacing expenses, the net loss narrowed to Rs 83 crore in FY25, down from Rs 88 crore in FY24. The company’s return on capital employed (ROCE) and EBITDA margin were recorded at -22.98% and -322.41%, respectively.

On a unit basis, Scapia spent Rs 4.26 for every rupee earned in FY25, a notable improvement from Rs 6.59 in FY24. The company also enhanced its balance sheet during the year, boasting a cash and bank balance of Rs 305 crore and current assets that more than doubled to Rs 331 crore.

As of now, Scapia has secured a total of $72 million in funding, with Peak XV Partners, Matrix Partners, and Elevation Capital leading the investment efforts. The founder, Anil Goteti, retains a 40% ownership stake in the company.