After raising $250 million in a Series C funding round from Softbank Vision Fund 2 at a valuation of $1.45 billion, Zeta, a banking startup, has become the new unicorn.
Sodexo, a food service company based in France, also participated in the round as a minority investor, with Avendus Capital serving as the financial advisor. The funds will be used to help businesses in the United States, Europe, and India scale up their operations. To meet the growing demand, the unicorn is expected to expand its staff, website, and operations.
The banking startup, founded by Bhavin Turakhia and Ramki Gaddipati in 2015, collaborates with over 25 fintech companies and ten banks, including HDFC Bank, Kotak Mahindra Bank, IndusInd Bank, Yes Bank, RBL Bank, and Axis Bank. With offices in the United States, Asia, the United Kingdom, and West Asia, Zeta employs nearly 750 people.
Bhavin Turakhia, CEO and Co-founder of Zeta, said “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,” in a press release shared by the startup.
Zeta's new Omni Stack will push banking tech updates catering to the digital consumer, as well as advances in financial services globally according to Manish Varma, Managing Partner, SoftBank Investment. He further added, globally, the banking software is worth $300 billion. Most banks also use technology that is many generations behind their customers, negatively affecting user experience and engagement.
According to Zeta, 61 per cent of financial institution executives agree that investing in newer technology is the most significant move they can take to boost their customer experience. By leveraging Zeta's Omni stack, banks around the world claim to have increased revenue, enhanced customer loyalty, and reduced fraud.