Banking tech start-up Zeta bagged secured an investment of $250 million from SoftBank Vision Fund 2 in Series C of funding. The company is now valued at $1.45 billion, after one of the largest single investments in a banking tech start-up globally, the Bengaluru-based firm claimed.
Sodexo, a Paris-based food services and facilities management company, participated as an additional minority investor in the round. Avendus Capital acted as the financial advisor for this transaction.
Zeta will use the proceeds from this funding round to accelerate 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 in 2015, Zeta is present in North America, LATAM, UK, Europe and Asia. The company counts amongst its customers more than 10 banks and 25 fintech firms across 8 countries, including Sodexo, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, YES Bank, RBL Bank, SBM Bank India, and others.
"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 and 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."
Zeta offers Omni Stack to banks and fintech firms, which it claims provides all the functionality banks need to launch relevant products.
"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," said Ramki Gaddipati, CTO and Co-founder, Zeta.
"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," said Munish Varma, Managing Partner, SoftBank Investment Advisers.