Banking technology company Zeta raises $250 million from SoftBank
Zeta, a banking tech startup, announced that it has secured $250 million in investment from SoftBank Vision Fund 2. This Series C investment values Zeta at $1.45 billion. This is one of the largest single investments in a banking tech startup globally.
Financial Institutions (FIs) work with dozens of tech vendors – most offering discrete pieces of functionality and archaic stacks that are older than the internet. Zeta’s Omni Stack provides all the functionality that FIs need to launch new products relevant to consumers today.
“Most banks are using decades old software built at a time when Mainframes and Cobol were in vogue. As a result they have been slow to innovate and provide poor user experiences,” said Bhavin Turakhia, CEO and Co-Founder of Zeta.
“With Zeta, FIs can leverage a modern, cloud native platform and improve speed to market, agility, cost to income ratio and user experience.” said Turakhia. “We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech.”
Zeta’s Omni Stack comprises:
- Zeta Tachyon Credit, Debit and Prepaid processing with card controls and personal finance management capabilities
- Zeta Tachyon Loans – a modern Buy-Now-Pay-Later and personal loan management platform
- Zeta Tachyon Deposits – a modern core for DDA, checking accounts, savings accounts and deposits
- and Zeta Tachyon Mobile – a ready-made, white labeled, customizable mobile app for credit cards, checking accounts, prepaid, loans, Buy-Now-Pay-Later, personal finance management and more
Zeta counts amongst its customers, over 10 Banks and 25 Fintechs, across 8 countries, including Sodexo – a leading Issuer of Employee Benefits & Rewards with over 30 million global users and HDFC Bank – the 14th largest bank by market cap in the world and others.
Munish Varma, Managing Partner, SoftBank Investment Advisers said, “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 Omni Stack will drive banking software upgrades catering to the digital consumer, and innovations in financial services globally.”
A recent Aite Group study found that 61% of FI 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 FIs that can be deployed in parallel for new programs and new customers without uprooting legacy technology. FIs across the globe have increased income, improved customer engagement and reduced fraud by leveraging Zeta’s Omni Stack.
Ramki Gaddipati, CTO and Co-Founder, Zeta added, “As the world moves to real time payments and digital financial services, the number of transactions per day between FIs and customers are expected to grow exponentially. The increasingly digital world represents evolving security, privacy and data protection challenges to banks. The industry needs systems reinvented with security, privacy, scalability and reliability as the core foundations. Zeta’s Omni Stack answers that need.”
Sodexo participated as an additional minority investor in the round. The proceeds of this funding round will be used to accelerate Zeta’s growth in the United States and Europe including scaling its operations, team, and platform to meet the demands of its expanding customer base.