ZETA BAGS THE 14TH PLACE THIS YEAR INTO THE COVETED UNICORN CLUB THROUGH ITS SERIES C RAISE

Implementation of technology has been extremely scarce in the banking sector, and with a $300-billion industry globally, investment in newer technologies has become a necessity to improve customer retention. The laggy system of the banks running on the age-old softwares such as Mainframes and Cobol, and the unsatisfactory experience for the users make up the primary concerns of the banking industry. Playing an influential role in furthering the banking sector, technology has steered the shift towards customer-centricity and monitoring the overall efficiency of the banking processes. It is pertinent for the banks and financial institutions to provide innovative solutions to tackle the upcoming private entrants, and Cloud-Native API’s can bridge the gap between the existing legacy systems and the digitized frameworks.

‘Zeta’, a Bangalore based banking technology startup was conceptualized in 2014, and was brought into existence in 2015 by serial entrepreneur and billionaire Bhavin Turakhia, and Ramki Gaddipati. With an innovative approach, the startup provides an Omni Stack technology solution for modern credit and debit card processing, core banking activities, loans, mobile banking, and personal finance management. The cloud-native solution and various products offered by Zeta allow banks to utilize this platform for new programs and customers without having to uproot their existing legacy technology. With a growing presence in North America, Latin America, UK, Europe, and Asia, Zeta counts 10 banks and 25 fintechs among its customers, notable ones including Sodexo, HDFC Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, SBM Bank India. Zeta currently has 800 employees globally, and as per the Bloomberg report, plan to doubt the headcount over the next 12 months.

On May 24, 2021, the Bangalore-based start-up secured an investment of $250 million, the globally largest one-time investment in a banking tech startup, which was led by SoftBank Vision Fund 2. With the Series C funding, Zeta is valued at $1.45 billion, making it the newest entrant to the coveted unicorn club. Remarking on the investment, Bhavin Turakhia, CEO & Co-founder, Zeta said, “We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech” In the official press release, Ramki Gaddipati, CTO & Co-founder, Zeta commented, “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.” Existing partner Sodexo also participated in the round as a minority investor, while Mumbai-based Avendus Capital acted as their exclusive financial advisor for this round. Optimistic about the investment, Munish Varma, managing partner, SoftBank Investment Advisers said, “Zeta’s modern omnistack will drive banking software upgrades catering to the digital consumer, and innovations in financial services globally.” 

Having been bootstrapped since inception, this banking tech startup has made it to the unicorn club within 7 years of its existence and aims to utilize these funds to scale into global markets, mainly focusing on the USA, Europe, and India. The funds will also be put towards growing the operations, team, and platform to accommodate the growing customer base.