Federal Bank resumes co-branded credit cards with Scapia

Federal Bank has resumed issuing co-branded credit cards with fintech startup Scapia after a year-long halt. This decision comes after the Reserve Bank of India allowed the bank to restart this service. Scapia, founded in 2022 by Anil Goteti, who previously worked at Flipkart, began promoting the new credit card about a month ago. Goteti confirmed that the partnership with Federal Bank is active. The bank had paused issuing co-branded cards last year due to regulatory requirements. In March 2024, both Federal Bank and South Indian Bank announced they were asked to stop issuing these types of cards. This regulation affected many fintech companies, including Scapia. The resumption of the program is seen as a positive move for Scapia, which is also looking to secure a major funding round. Scapia is currently in talks to raise $30-40 million in equity funding, following a previous fundraising of $23 million in late 2023. The company provides a travel-focused credit card with various benefits designed for young travelers. Goteti aims to develop a travel ecosystem that simplifies booking and planning for customers. Changes made by Federal Bank to meet regulatory standards are expected to enhance the overall fintech environment. The Reserve Bank of India has been increasing scrutiny in the credit card sector, implementing new guidelines for data sharing and brand display. As of January 2025, there were approximately 108 million credit cards in India, reflecting a 9% growth year-over-year. Federal Bank's stock was up 1.3% on the Bombay Stock Exchange, trading at Rs 179.5.