April 4, 2025: Peak XV Partners is making bold bets on high-growth startups, injecting $48 million into two rapidly expanding businesses—Sweet Karam Coffee, a South Indian food brand, and Scapia, a travel fintech innovator. Known for backing companies with enormous potential, Peak XV’s latest investment strategy highlights its commitment to tapping into sectors that promise substantial growth.
From health-conscious food brands disrupting the market to fintech startups revolutionizing travel experiences, Peak XV is positioning itself at the forefront of innovation in industries poised for exponential success.
Sweet Karam Coffee, a renowned South Indian food brand, has successfully raised $8 million in a Series A funding round led by Peak XV Partners. The funding also saw participation from existing investor Fireside. The Chennai-based company plans to channel the raised capital into expanding its omnichannel presence, boosting new product development, and reinforcing its supply chain and brand identity.
Sweet Karam Coffee Expands into 32 countries, Presence in 2500 Quick Commerce Stores
Nalini Parthiban, Co-founder and CEO of Sweet Karam Coffee, emphasized the importance of quick commerce, stating, “Quick commerce is bridging distribution like never before, and our products are now loved not just in the South but across the country. We are particularly proud of leading the charge against palm oil from Day 1.”
Founded in 2015, Sweet Karam Coffee specializes in a variety of South Indian sweets, snacks, filter coffee blends, and ready-to-eat meal mixes. The brand has become a favorite among health-conscious consumers due to its commitment to avoiding palm oil and preservatives. Currently, Sweet Karam Coffee operates in 32 countries and is present in over 2,500 quick-commerce dark stores.
The company has experienced impressive growth, with revenue soaring 4X over the last year. With ambitious goals for the upcoming year, Sweet Karam Coffee is set to grow an additional 2.5X in the next 12 months. To drive this expansion, Sweet Karam Coffee recently appointed former Unilever executive, Nandhitha Indermohan, as its Chief Operating Officer.
Abishek Mohan from Peak XV Partners highlighted the growth opportunities in the South Indian snacks and sweets market, stating, “The South Indian snacks and sweets market, valued at over Rs 25,000 crore, is evolving rapidly. The shift from unorganized to organized players and the growing demand for healthier alternatives present a tremendous opportunity for brands like Sweet Karam Coffee.”
Scapia Raises $40 Million from Peak XV Partners to Boost Travel Fintech Innovation
In another major development, Scapia, a travel-focused fintech startup, announced that it raised $40 million in a Series B funding round, led by Peak XV Partners. The round also saw participation from existing investors Elevation Capital, Z47, and 3STATE Capital. Scapia plans to utilize the funds to enhance its product offerings in travel and financial services, expand its team, and invest in advanced AI capabilities.
Anil Goteti, Founder and CEO of Scapia, shared, “Over the past three years, we’ve focused on building exceptional travel products and partnerships with banks. With the support of Peak XV Partners and our existing investors, we are poised to accelerate our product roadmap and deliver cutting-edge solutions to travelers faster than ever before.”
Scapia’s co-branded card, developed with Federal Bank, is a standout feature, offering zero joining and annual fees, no forex markup, and complimentary lounge access at domestic airports. Users enjoy 10% rewards on all transactions, with 20% rewards on travel bookings made through Scapia’s app. Over the last year, Scapia customers have traveled to over 100 countries using their co-branded card.
The travel fintech space is experiencing significant growth, particularly as millennials and Gen Z make up 50% of all credit card issuance in India. This demographic shift is expected to fuel an $80–100 billion annual revenue opportunity by 2030.
Tejeshwi Sharma, Managing Director at Peak XV Partners, said, “Millennials and Gen Z are turning travel into a guilt-free, all-pleasure experience, setting the stage for rapid growth in the travel industry. Scapia is uniquely positioned to capitalize on this by merging a booming travel market with the untapped credit card market.”
Recently, Scapia launched a RuPay variant of its co-branded card to capture UPI-based transactions, expanding its reach and further positioning itself as a leader in the travel fintech space.
Key Takeaways:
- Sweet Karam Coffee raises $8 million for omnichannel expansion and new product development.
- Scapia secures $40 million to accelerate travel fintech innovation and enhance AI capabilities.
- Both startups are targeting rapid growth in their respective markets: South Indian food and travel fintech.
