June 13, 2024
Fintech startup Scapia, which points cobranded bank cards in partnership with personal sector lender Federal Financial institution, slashed credit score limits for a bunch of its customers, inflicting a stir on-line.A number of Scapia card customers throughout X (previously Twitter), Quora and different social media platforms raised issues about this sudden resolution.

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Some customers noticed their limits being lowered to Rs 20,000 from as excessive as Rs 8 lakh, whereas for others, it went right down to Rs 15,000 from Rs 2.3 lakh.

ET has reached out to Scapia founder Anil Goteti and Federal Financial institution for feedback. The story might be up to date as soon as they reply.A fintech founder identified that banks are taking a tough have a look at the cash they’re making on these playing cards and profitability on this enterprise has been difficult.

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“Scapia went after premium customers and provided them a extremely rewarding card at negligible prices and given the occasions are powerful banks are going cautious on these merchandise,” the founder added.The Reserve Financial institution of India lately requested banks to allocate a bigger share of their capital in opposition to their unsecured books, which made many lenders cautious about their unsecured books.

One other senior trade government mentioned credit score limits and underwriting insurance policies are dictated by the banking companions and never the fintechs. On this case, prospects are reaching out to Scapia as they’re the customer-facing platform, however the restrict discount has been issued by the financial institution.

Scapia was based in 2022 by ex-Flipkart senior government Anil Goteti. The Bengaluru-based startup has raised $32 million from the likes of Matrix Companions India and Elevation Capital. The corporate formally launched this travel-focussed card in partnership with Federal Financial institution solely in June 2023.

In November, it raised $23 million in a recent spherical of funding led by Elevation Capital and Flipkart cofounder Binny Bansal’s Three State Ventures. Goteti, on the time, advised ET he was wanting so as to add extra banking companions for issuing its playing cards.