Zeta, a financial technology firm, announced in a statement that it has raised $50 million in a strategic fundraising round, bringing its total value to $2 billion.
Zeta was valued at $1.15 billion before raising $250 million from SoftBank Vision Fund 2 and other investors in 2021. This is a significant rise.
The most recent round was led by the American healthcare giant Optum, according to insiders. The financing comes as investor interest in the financial technology industry is rising.
The fintech unicorn intends to use the money for product development and growth.
“We are incredibly excited at the pace at which clients are embracing our modern stack,” said Zeta global CEO and co-founder Bhavin Turakhia.
Over the past few years, the company has supported more than 25 million accounts on its cloud-native processing platform, Tachyon, and it is on track to add another 25 million with contracts in the works, he said.
“Our clients are breaking away from decades of legacy systems to deliver amazing digital experiences thereby increasing their customer satisfaction and accelerating new user acquisition,” he added.
Banks and fintech firms can launch any asset, liability, or payment product using Zeta’s SaaS solutions. Ramki Gaddipati and Turakhia launched the business in 2015. These include credit cards, bank and savings accounts, and unsecured loans.
Zeta has launched a range of solutions for financial institutions, including HDFC Bank, Sparrow Financial, a card issuer for non-prime cardholders in the US, and Pluxee, a global corporate perks provider. Pixel is a credit card service that is digitally native.
As of October, Zeta was processing nearly two million transactions daily as a result of the growing demand for credit on UPI products. Its credit-on-UPI stack, which helps banks with digital origination, distribution, and collection, was unveiled in May. The corporation wants to capture half of the market with this solution.
“Credit on UPI” refers to the integration of credit cards and other credit facilities with the UPI system in India.
Zeta employs 1,700 people, distributed throughout US and Asian locations, with around 70% of them working in technology.
The $340 million that Zeta has received from investors includes SoftBank and Mastercard. The income model of the company is pay-per-use.
Zeta’s financing comes as investor interest in the market is rising. Five months ago, the application programming interface (API) infrastructure company M2P Fintech raised Rs 850 crore, or around $102 million, through a combination of main and secondary share capital, led by Helios Investment Partners, based in Africa.
Fintech infrastructure startup Juspay is negotiating a $150 million funding round headed by Kedaara Capital, with participation from SoftBank and WestBridge.
Ready to invest like a pro? Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!
