Scapia Raises $9 Million for Travel Rewards Credit Card

25.08.2023 - 13:17 / skift.com / Justin Dawes / Credit Card

Five travel tech startups raised $63.2 million this week.

>>Scapia, which offers a credit card and software dedicated to travelers, has raised $9 million in seed funding. It was led by Matrix Partners India, with participation from Tanglin Venture Partners, Binny Bansal’s 3STATE Ventures, and angel investors including Keki Mistry. 

The Bangalore-based company has been operating in stealth mode for the past year and released a co-branded Visa credit card in partnership with Federal Bank for the Indian market. 

Benefits include no foreign exchange fees, unlimited domestic airport lounge access, no annual or joining fees, and 10% rewards for all purchases. 

The credit card app includes a tool that enables customers to instantly redeem points for flight and hotels, bookable through the app, the company said. 

Scapia was founded by Anil Goteti, former executive of Indian ecommerce company Flipkart.

Goteti said in a statement that fewer than 5% of Indians have credit cards, and the country is projected to have 200 million credit cards in circulation by 2030. 

“Millennials, with their considerable interest in travel, are looking for a primary card that can effectively reward them with travel benefits and perks. In addition, they want a delightful app with transparency and service that they can trust,” Goteti stated. 

>>Utu has closed on a $33 million transaction that includes new funding from SC Ventures as well as funding that was adopted through an acquisition. The company did not disclose what share of the $33 million is new funding. 

Singapore-based Utu is an app meant to give travelers higher tax refunds on tax-free shopping. 

Some countries offer the ability for visitors to get a refund of value-added tax (VAT) when making purchases there. Traditionally, the refund comes in the form of a direct deposit or check after submitting paperwork and fulfilling requirements. 

Utu users can have their refunds sent to a card issued by Utu instead. The company said that users can receive a refund value of up to 30% more when they purchase from one of the company’s airline or hotel partners, and they can gain up to 40% more value by opting for airline miles or hotel points over cash refunds. The company can also immediately issue store vouchers of up to 120% of the sales tax paid during overseas shopping. 

Partners include Accor, Air France-KLM, Emirates, Etihad, Qatar Airways, and Singapore Airlines.

The rollover capital in the $33 million deal comes from the acquisition of Singapore-based CardsPal, a platform focused on local rewards promotions, for an undisclosed price. 

Utu said it plans to incorporate CardsPal’s mobile-first technology and add its staff to the larger company. 

Utu plans to expand into around