Zeta’s valuation jumps to $ 1.45 billion in one of the largest single raises by a Banking Tech Startup
Bengaluru, May 24: Zeta, a banking tech startup, announced today that it has secured $250 million in investment from SoftBank Vision Fund 2. This Series C investment values Zeta at $1.45 billion. This is one of the largest single investments in a banking tech startup globally.
Banks work with dozens of tech vendors – most offering discrete pieces of functionality and archaic stacks that are older than the internet. Zeta’s Omni Stack provides all the functionality that banks need to launch new products relevant to consumers today.
“Most banks are using decades old software built when Mainframes and Cobol were in vogue. They have been slow to innovate and provide poor user experiences. With Zeta, FIs can leverage a modern, cloud native platform and improve speed to market, agility, cost to income ratio and user experience” said Bhavin Turakhia, CEO & Co-founder, Zeta. “We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech” Bhavin added.
Zeta counts amongst its customers over 10 Banks and 25 Fintechs, across 8 countries, including Sodexo, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, SBM Bank India and others.
Munish Varma, Managing Partner, SoftBank Investment Advisers said, “Banking software is a $300 billion industry globally. Most banks still employ technology which is significantly older than their customers, impacting user experience and engagement. Zeta’s modern Omni Stack will drive banking software upgrades catering to the digital consumer, and innovations in financial services globally.”
A recent Aite Group study found that 61% of financial institution executives believe investment in newer technologies is the most important measure they must take to improve their customer experience. Zeta provides the only fully modern platform for banks that can be deployed in parallel for new programs and new customers without uprooting legacy technology. Banks across the globe have increased income, improved customer engagement and reduced fraud by leveraging Zeta’s Omni Stack.
Ramki Gaddipati, CTO & Co-founder, Zeta: “As the world moves to real time payments and digital financial services, the number of transactions per day between banks and customers are expected to grow exponentially. The increasingly digital world represents evolving security, privacy and data protection challenges to banks. The industry needs systems reinvented with security, privacy, scalability and reliability as the core foundations. Zeta’s Omni Stack answers that need.”
Sodexo participated as an additional minority investor in the round. The proceeds of this funding round will be used to accelerate Zeta’s growth in the United States, Europe and India including scaling its operations, team, and platform to meet the demands of its expanding customer base.
Founded by Bhavin Turakhia and Ramki Gaddipati, Zeta has presence in North America, LATAM, UK, Europe and Asia. Avendus Capital acted as the exclusive financial advisor on this transaction.