Zeta Secures $50 Million Investment, Valuation Soars to $2 Billion
- ByStartupStory | February 11, 2025
Zeta, a fast-growing banking technology provider, has secured a $50 million investment from a strategic investor, boosting its valuation to $2 billion. This marks a major jump from its 2021 pre-money valuation of $1.15 billion when it raised $250 million from SoftBank Vision Fund 2 and other investors.
Zeta is reshaping the banking technology space with its modern, cloud-based platform. Like replacing old roads with high-speed highways, Zeta is helping banks move beyond outdated systems. According to Bhavin Turakhia, Zeta’s Global CEO and Co-founder, the company has already supported over 25 million accounts on its processing platform, Tachyon. It is set to double that number with ongoing contracts. “Our clients are moving away from outdated systems to create better digital experiences, increasing customer satisfaction and attracting more users,” Turakhia stated.
The company’s software enables banks and financial firms to launch various products, including credit cards, checking and savings accounts, and loans. Built on flexible and scalable technology, Zeta’s platform adapts to the changing needs of financial institutions, much like a river shaping its path over time.
Its range of products covers every stage of the banking experience. Like a well-coordinated orchestra, each tool plays a key role in creating a smooth financial system. The platform includes Tachyon for core banking and payments, Photon for merchant payments, and Neutrino for AI-driven banking tools. Other components, such as Saturn, Luminos, Electron, and Quark, support different aspects of banking operations.
Zeta has secured key clients, including HDFC Bank, which partnered with the company to launch Pixel, a digital-first credit card program. Other major partners include Pluxee, a global corporate benefits provider, and Sparrow Financial, a US-based card issuer for customers with limited credit history.
Zeta’s reach is growing fast. In May 2023, the company launched a credit-on-UPI system, helping banks manage digital lending. Processing around 2 million transactions daily, Zeta is speeding towards a future where digital credit is widely available. The company aims to capture 50% of the credit-on-UPI market in India, a sector seeing rapid growth.
Zeta’s financial performance has been impressive, showing it is not just making promises but delivering results. Its parent company, Better World Technologies Private Ltd, reported a 5.4x rise in profit after tax (PAT) to Rs 119.82 crore in FY24 from Rs 21.94 crore the previous year. Revenue also grew by 9.42%, reaching Rs 893.12 crore.
The recent $50 million funding, reportedly led by American healthcare firm Optum, comes at a time when investor interest in banking technology is growing. This funding is bound to drive Zeta’s expansion and product development, helping it modernise banking for institutions worldwide.
With over 1,700 employees- 70% of them in technology roles- spread across the US, the Middle East, and Asia, Zeta continues to establish itself as a major player in banking technology. This latest investment highlights Zeta’s market potential and paves the way for further innovations, keeping the company ahead in the evolving financial sector.
Follow Startup Story
Related Posts
