Zeta, a prominent provider of banking software to banks and fintech startups, recently secured $50 million from a strategic investor. This significant investment elevates Zeta’s valuation to $2 billion, marking a 70% increase from its previous valuation of $1.15 billion. Founded in 2015 by Bhavin Turakhia and Ramki Gaddipati, Zeta has established a global presence with 1,700 employees across the U.S., Middle East, and Asia. The company is pioneering advancements in the banking sector with its cutting-edge technology solutions.
Zeta's flagship customer in India is HDFC Bank, the largest private lender in the nation. HDFC Bank has leveraged Zeta's technology to enhance its PayZapp digital payments platform. The U.S. remains Zeta's largest market, trailed by India where the company generates annual revenue exceeding $50 million. Zeta has invested approximately $400 million into its platform since inception and anticipates achieving profitability by March 2026.
“Through the next decade, we intend to capture 25% of the market share,” – Turakhia
The company's offerings include modules for core banking, payment processing, fraud detection, and customer engagement. Currently, Zeta serves 25 million accounts and has plans to expand by another 25 million. While Zeta is in discussions with several large U.S. banks, it acknowledges that such partnerships often take years to come to fruition.
“In all likelihood, this $50 million is going to sit in the bank […] This investment reflects a reaffirmation of our journey.” – Turakhia
Zeta's commitment to innovation is evident as it tackles the challenges of modernizing banking systems. Many institutions, according to Turakhia, continue to rely on outdated mainframe technology.
“In banking, 60%-70% of institutions still operate on mainframes — many created before some of us were even born,” – Turakhia
The company’s strategic investment from Optum underscores confidence in Zeta's vision and operational prowess. As Zeta continues to build on its technological capabilities and expands its market reach, it remains steadfast in its mission to redefine the banking software landscape.
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