Zeta Gets $50 Million Investment As Its Value Jumps To $2 Billion
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Zeta has received a $50 million investment. This new funding has increased Zeta’s valuation to $2 billion, the company said. Before this, Zeta was worth $1.15 billion when it received $250 million from SoftBank Vision Fund 2 and other investors in 2021.
The new investment round was led by American healthcare company Optum. The funding comes at a time when more investors are interested in banking technology. Zeta plans to use the money to expand and make its products better.
Zeta Sees More Clients Using Its Technology
Bhavin Turakhia, Zeta’s global Chief Executive Officer and co-founder, said the company is happy with how fast clients are using its technology. Over the last few years, Zeta has helped more than 25 million accounts through its cloud-based platform, Tachyon. He also said that Zeta is set to add another 25 million accounts with ongoing contracts.
Turakhia noted that banks and financial companies are moving away from old systems to offer better digital services. This, he said, is helping banks keep their customers happy and bring in more users.
Zeta was started in 2015 by Turakhia and Ramki Gaddipati. The company provides banking software that helps banks and fintech firms launch different types of financial products. These include credit cards, savings accounts, checking accounts, and loans.
Zeta Works With Big Financial Companies
The firm works with banks and financial companies like HDFC Bank. It has launched many products, including Pixel, a digital credit card program. It also works with Pluxee, a company that provides corporate benefits, and Sparrow Financial, which issues credit cards for people with lower credit scores in the US.
As of October, Zeta was handling about 2 million transactions every day. The company has seen more demand for its credit-on-UPI services, which allow banks to provide credit through India’s UPI payment system. Zeta started offering this service in May and aims to capture 50% of the market.
Credit on UPI allows users to connect their credit cards with India’s UPI payment system. This lets them make payments easily using credit. Zeta has around 1,700 employees, and more than 70% of them work in technology roles in different countries, including the US and Asia.
Zeta has raised $340 million from investors, including SoftBank and Mastercard. The company follows a pay-per-use revenue model. In the financial year 2024, its Indian parent company, Better World Technologies Private Ltd, reported a 5.4 times increase in profit, reaching Rs 119.82 crore. The company’s revenue also grew by 9.42%, reaching Rs 893.12 crore.
