Zeta raises $50m in fresh funding; valuation jumps to $2bn

By Gloria Methri

Zeta, a next-gen banking tech provider to financial institutions globally, has secured a $50 million investment from a strategic investor valuing it at $2 billion. Zeta had previously been valued at a pre-money valuation of $1.15 billion when it raised $250 million from Softbank Vision Fund 2 and other marquee investors in 2021.

“We are incredibly excited at the pace at which clients are embracing our modern stack,” said Zeta’s CEO and Co-founder, Bhavin Turakhia. He added, “Over the past few years, we have supported over 25 million accounts on our cloud-native processing platform Tachyon and are on track to add 25 million more with contracts already in flight. Our clients are breaking away from decades of legacy systems to deliver amazing digital experiences, thereby increasing their customer satisfaction and accelerating new user acquisition.”

Zeta’s SaaS offerings enable Banks and FinTechs to launch any asset, liability or payment product including credit cards, checking accounts, savings accounts, unsecured loans, and more – for consumers, SMBs and corporates on a modern, Microservices based, API-first, Cloud-native, and Headless (MACH) platform.

Zeta’s SaaS suite encompasses every step of the customer lifecycle of a banking product, comprising the following offerings:

• Tachyon: Core Banking & Issuer Payments Suite
• Photon: Merchant Acquiring & Payments Service Provider Suite
• Neutrino: Digital Banking & AI Applications Suite
• Saturn: Issuer Operations & Servicing Suite
• Luminos: Customer Engagement & Rewards Suite
• Electron: Commercial Cards & Benefits Suite
• Quark: Data & Intelligent Applications Suite

Commenting on the recent trajectory, Zeta’s Co-founder, Ramki Gaddipati, said, “Zeta’s mission to be a trusted partner to financial institutions is possible through the patient efforts of the best team ever assembled in banking technology. While the past few years have been challenging for the banking tech industry, our organization has delivered multiple winning programs for our clients in record times.

Zeta counts some of the largest and most regulated financial institutions as its clients, including HDFC Bank, with whom it has launched a suite of products, including Pixel – an innovative digital-native credit card program; Pluxee, a global corporate benefits provider; and Sparrow Financial, a card issuer for non-prime cardholders in the US.