Zeta, a banking tech startup, has secured $250 million in investment from SoftBank Vision Fund 2. This Series C investment values Zeta at $1.45 billion, making it one of the largest single investments in a banking tech startup globally.
"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.
He said with the SoftBank investment, the company is ready to disrupt the stagnant landscape of banking tech. The Bengaluru-based startup has 10 banks and 25 fintechs spread across eight countries as its customers, including Sodexo, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, and SBM Bank India.
"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," Munish Varma, Managing Partner, SoftBank Investment Advisers said.
Ramki Gaddipati, CTO & Co-founder, Zeta, said the industry needs systems reinvented with security, privacy, scalability and reliability as the core foundations. "Zeta's Omni Stack answers that need," Gaddipati added.
During the funding, 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.
HOW ZETA WORKS
Banks work with dozens of tech vendors -- most offering discrete pieces of functionality and archaic stacks. Zeta's Omni Stack provides all the functionality that banks need to launch new products relevant to consumers today. Zeta's Omni Stack comprises Zeta Tachyon Credit, Debit and Prepaid processing with card controls and personal finance management capabilities; Zeta Tachyon Loans - a modern Buy-Now-Pay-Later and personal loan management platform; Zeta Tachyon Deposits - a modern core for DDA, checking accounts, savings accounts and deposits; and Zeta Tachyon Mobile - a white labelled, customisable mobile app for credit cards, accounts, prepaid, loans, buy-now-pay-later, and personal finance.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today