Banking tech startup Zeta announced on Monday that it has secured $250 million in investment from SoftBank Vision Fund 2. This Series C investment values Zeta at $1.45 billion and is one of the largest single investments in a banking tech startup globally. The Bengaluru-based company said its Omni Stack provides all the functionality that banks need to launch new products relevant to consumers today.
Zeta counts amongst its customers over 10 banks and 25 fintechs across eight countries, including Sodexo, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, SBM Bank India and others. Founded by Bhavin Turakhia and Ramki Gaddipati, Zeta has presence in North America, LATAM (Latin America), UK, Europe and Asia.
â€śMost banks are using decades old software built when mainframes and Cobol were in vogue. They have been slow to innovate and provide poor user experience. With Zeta, FIs can leverage a modern, cloud native platform and improve speed to market, agility, cost to income ratio and user experience,â€ť said Bhavin Turakhia, who is also Zetaâ€™s CEO. â€śWeâ€™re privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech,â€ť Bhavin added.
A recent Aite Group study had found that 61% of financial institution executives believe investment in newer technologies is the most important measure they must take to improve their customer experience.
Zeta said it provides a fully modern platform for banks that can be deployed in parallel for new programs and new customers without uprooting legacy technology. â€śBanks across the globe have increased income, improved customer engagement and reduced fraud by leveraging Zetaâ€™s Omni Stack,â€ť the company said in a statement.
Sodexo participated as an additional minority investor in the round. Avendus Capital acted as the exclusive financial advisor on this transaction. The proceeds of this funding round will be used to accelerate Zetaâ€™s growth in the United States, Europe and India, including scaling its operations, team and platform to meet the demands of its expanding customer base.
Munish Varma, Managing Partner, SoftBank Investment Advisers, said, â€śBanking software is a $300 billion industry globally. Most banks still employ technology that is significantly older than their customers, impacting user experience and engagement. Zetaâ€™s modern Omni Stack will drive banking software upgrades catering to the digital consumers and innovations in financial services globally.â€ť