Federal Bank, based in India, has resumed its co-branded credit card issuance with fintech startup Scapia after a year-long suspension. The move follows approval from the Reserve Bank of India (RBI), allowing Scapia to continue promoting its travel-focused credit card. The partnership will help Scapia expand its customer base and secure additional funding.
Federal Bank, a leading private sector bank in India, has resumed its co-branded credit card issuance with fintech startup Scapia after a year-long suspension. This development follows approval from the Reserve Bank of India (RBI), which had previously halted such issuances in March 2024 due to regulatory concerns. Scapia, a Bengaluru-based fintech company specializing in travel-focused credit cards, has been actively promoting the relaunch of the product for the past month.
Scapia was founded in 2022 by Anil Goteti, a former senior vice president at Flipkart. The company offers a travel-focused credit card designed to provide exclusive benefits for young travelers, including discounts on bookings, reward points, and zero forex markup fees. The renewed partnership with Federal Bank is expected to accelerate Scapia’s expansion and enhance its market presence in India’s competitive fintech sector.
In addition to resuming its co-branded credit card business, Scapia is in discussions to raise $30-40 million in a funding round, following a $23 million investment in November 2023. The fresh capital is expected to fuel the startup’s growth and strengthen its offerings in the financial services space.
The restart of co-branded credit card issuance aligns with revised regulatory norms, ensuring compliance with underwriting standards and risk assessment measures. With these adjustments, Federal Bank and Scapia aim to scale up operations while maintaining regulatory transparency. Industry experts view this as a positive step for India’s fintech ecosystem, as co-branded credit cards remain a lucrative segment for both banks and startups.
As the fintech industry continues to evolve, Federal Bank and Scapia’s collaboration is expected to set a precedent for future partnerships, highlighting the importance of regulatory compliance in financial product innovation.
