Banking tech start-up Zeta enters unicorn club with $1.4 bn valuation

Founded by serial entrepreneur and billionaire Bhavin Thurakia, it is the 14th company this year to cross the $1 billion valuation mark.

Banking technology start-up Zeta is the latest entrant to the unicorn club after raising $250 million in its Series C round from SoftBank Vision Fund 2.

Sodexo participated as an additional minority investor in the round.

Founded by serial entrepreneur and billionaire Bhavin Thurakia, the startup is now valued at $1.4 billion.

It is the 14th company this year to cross the $1 billion valuation mark after Meesho, Cred, Pharmeasy, ShareChat, Moglix and others.

The proceeds of this funding round will be used to accelerate Zeta’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.

“Most banks are using decades old software built when Mainframes and Cobol were in vogue.

“They have been slow to innovate and provide poor user experiences.

“With Zeta, FIs can leverage a modern, cloud native platform and improve speed to market, agility, cost to income ratio and user experience,” said Bhavin Turakhia, CEO and cofounder, Zeta.

Zeta counts among its customers over 10 banks and 25 fintechs, across eight countries, including Sodexo, HDFC Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, and others.

Founded by Turakhia and Ramki Gaddipati in 2015, it has presence in North America, Latin America, UK, Europe and Asia.

A recent Aite Group study found that 61 per cent of financial institution executives believe investment in newer technologies is the most important measure they must take to improve their customer experience.

Zeta provides the only fully modern platform for banks that can be deployed in parallel for new programs and new customers without uprooting legacy technology.

Banks across the globe have increased income, improved customer engagement and reduced fraud by leveraging Zeta’s Omni Stack.

“Banking software is a $300-billion industry globally.

“Most banks still employ technology which is significantly older than their customers, impacting user experience and engagement.

“Zeta’s modern omnistack will drive banking software upgrades catering to the digital consumer, and innovations in financial services globally,” said Munish Varma, managing partner, SoftBank Investment Advisers.

Avendus Capital acted as the exclusive financial advisor on this transaction.

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