Scapia raises $63 million led by General Catalyst to scale AI-led travel fintech play

Travel fintech startup Scapia has raised $63 million in a new funding round led by General Catalyst, with ongoing participation from existing investors Peak XV Partners and Z47.

“We are still very young and very small in terms of the size of India. There is a huge opportunity to scale the business to a larger customer base,” said Anil Goteti, founder and CEO of Scapia. Mint. The company’s Series C was an all-primary round with no secondary transactions.

The company declined to comment on its valuation, saying it was “ultimately the result of a long-term exercise.”

The company operates at the intersection of fintech and travel and, in partnership with Federal Bank and Bank of Baroda, offers users a marketplace alongside co-branded credit cards to book flights and purchase travel-related products.

Scapia’s fundraising comes as Gen Z and Millennial consumers in India are increasingly spending more on travel. A joint report by Redseer Strategy Consultants and Fireside Ventures earlier this year found that one in three consumers spend more than 20% of their income on travel. Generation Z in India is expected to spend $102 billion on travel by 2030; this is up from $32 billion in FY24.

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AI push

The four-and-a-half-year-old company plans to use the capital to expand its customer base, invest in AI-specific product development and hire talent across teams.

“The bulk of the hires will be for AI native builders, with many more for product development. These will include engineers, data scientists, designers and product people who can continue to innovate,” Goteti said.

Given Scapia’s business model, a significant portion of the capital will also go towards deploying AI internally on the platform and for customer-facing products.

“The problem is not technology. It’s user experience and design that needs to be solved. A typical chat interface won’t work,” Goteti said.

He argued that AI-driven consumer experiences in travel will require audiovisual interfaces where users can view destinations, products and experiences before booking.

The company already uses AI internally for teams and customer service operations and plans to expand its use in the travel market. Goteti said some AI products are already live and Scapia is actively testing AI-specific travel experiences.

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growth focus

While Scapia currently partners with two banks, the company is in the process of adding new banking partners and discussions are expected to be completed before the start of the third quarter of this fiscal year.

Scapia’s user base consists largely of Gen Z and Millennial consumers, and the average user age is 29. The company does not currently plan to expand to older demographic groups.

The company declined to give details about the number of users it has, but said that it grew approximately 8 times last year, with the highest growth seen in the hotels segment with 10-15 times annually.

“50% of India’s new cards are issued to these generations and will continue to grow. I want to have a sharp strategy on who I want to target and offer them something that not only appeals to them but also serves their needs,” said Goteti.

Most of Scapia’s users currently come from Tier-I cities, but the company sees Tier-II and smaller markets as a key growth driver going forward.

“Rising disposable incomes, improving travel infrastructure, and social media-driven travel desires are all contributing to this change,” Goteti said. “As travel across India becomes more accessible and aspirational, we see significant long-term potential in these markets.”

The company is also exploring additional financial services products beyond its existing no-cost EMI and ‘Travel Now Pay Later’ offerings.

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“If people are already exhausting their limits on the card, we think there is an opportunity to see if there is a temporary loan they can use for their travels or other needs. Therefore, we will also embark on these journeys in financial services,” Goteti said.

The company’s revenue as of the end of Fiscal Year 25 was as follows: ₹40.4 crore ₹24.2 crore in the previous year, according to data from Tracxn. Scapia also narrowed its losses marginally. ₹83.1 crore, downwards ₹88 crore in FY24.

“Scapia is currently in investment mode and this is a very conscious choice. We believe that profitability will increase organically as our customer groups mature and grow,” Goteti said. “As the business evolves, our approach will be to balance growth with sustainable profitability over the long term.”