Travel-fintech startup uses AI for visa applications and train reservations after credit card glitch

Mumbai: Travel-fintech startup Scapia has launched artificial intelligence-based visa application and train booking services, expanding deeper into the travel segment after its credit card business was blocked by regulatory obstacles.

Access to Scapia’s platform, however, remains restricted to cardholders, although the company plans to expand its customer base through a referral program later this year, according to founder and chief executive Anil Goteti.

The Bangalore-based company launched its consumer-facing platform in June 2023, starting with flight and holiday bookings. Since then, Scapia has also expanded its offering to bus and train reservations.

“We are not just a fintech or a travel agency. We are building a platform that simplifies every aspect of travel, whether it’s payments, bookings or rewards,” said Goteti.

Scapia has not been able to onboard new users for its co-branded credit cards associated with Federal Bank for almost a year.

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In March last year, the Reserve Bank of India ordered the Federal Bank to stop issuing new co-branded credit cards, including those in partnership with Scapia, citing regulatory loopholes.

“We are waiting for these restrictions to be lifted and will gradually expand our user base once the embargo is lifted,” Goteti said, adding that the company is improving its platform for existing users in the meantime.

Currently, Federal Bank is Scapia’s only banking partner. Goteti said the company plans to enter into partnerships with other banks soon and is exploring the possibility of introducing new variants of co-branded cards. Scapia’s partnership with Federal Bank offered markup-free credit cards in foreign currency.

“The Federal Bank is not our exclusive partner. We are in discussions with other banks to bring more co-branded variants to market, thereby providing customers with more choices tailored to their needs,” Goteti said.

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Tap on the young traveler

Scapia’s AI-powered visa application platform allows travelers to upload a passport scan and selfie, while Scapia’s system automates the application process. A dedicated visa expert will help you with additional documentation and approvals. The visa service is currently available for 45 countries but will soon be expanded to 80 to 90 countries, according to Goteti.

Scapia’s train reservation service, developed in partnership with the Indian Railway Catering and Tourism Corporation (IRCTC), offers tatkal reservations, berth preferences and fare redemptions using Scapia Coins, which are reward points credited to cardholders on their spending. Users can also use their Scapia credit card to book train tickets or exchange coins.

Goteti said Scapia focuses on millennials and Gen Z travelers (people ages 29 to 43 and 12 to 27), adding that they tend to prioritize experiences over possessions. equipment and are ready to use credit to finance their travels.

“This generation does not view travel as a luxury; it’s a lifestyle. They want products that meet their aspirations, whether it’s elegant card designs or seamless digital experiences. For them, traveling means opening new perspectives and creating lasting memories,” said Goteti.

For example, Scapia Unmapped, an offbeat travel program organized by the company, received 700 applications for its Vietnam trip, which was scheduled for Feb. 9 and had only 14 spots available, Goteti said.

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By 2024, Scapia’s platform has facilitated travel to 89 countries, with international bookings accounting for 20% of its total business. Nearly half of all bus reservations on the platform were for single passengers.

Goteti declined to share details about the company’s total number of users and transactions.

Scapia has raised $32 million in two funding rounds. In June 2023, the company secured $9 million in a seed funding round from Z47 (formerly known as Matrix Partners India), Tanglin Venture Partners, Keki Mistry and 3STATE Ventures.

Later in November of the same year, Scapia raised $23 million in a Series A funding round led by Elevation Capital and 3STATE Ventures, in which Z47 and Tanglin also participated.