Fintech startup Zeta has raised a Series C investment of under $60 Mn from Sodexo at a valuation of $300 Mn. With this investment, Sodexo will acquire a minority stake of under 20 percent in Zeta.
With this new funding, Zeta will look at expanding its cloud banking platform and digital payments solutions across global markets — US, UK, Europe, and South-East Asia.
Bhavin Turakhia, co-founder and CEO, Zeta stated, “Today’s banking and fintech ecosystem requires cloud-native, privacy-aware, inherently secure, API first banking and payment solutions. This new investment, will further our vision to accelerate to a world where payments are invisible and seamless. We will be expanding our operations to 7-10 countries in the next 18 months, with full-fledged teams in each new country. We will also double our engineering team with 200 new hires.”
Founded in 2015 by co-founders Bhavin Turakhia and Ramki Gaddipati, Zeta started its journey in the digital meal benefit market. Its present product portfolio includes a full-stack, cloud-native, neo-banking platform for issuance of credit, debit and prepaid products that enable legacy banks and new-age fintech institutions to launch retail and corporate fintech products. It also includes an enterprise solution for corporates, such as automated cafeteria, employee gifting and rewards, and recognition. Its products are used by RBL Bank, IDFC First Bank and Kotak Mahindra Bank, 14,000 corporate firms and over two million users
Till date, the startup has been funded by its co-founders who have together invested $40 Mn. This investment marks the first time that billion serial entrepreneur Bhavin has raised capital for one of his many ventures.
The investment comes on the back of the startup’s plans to scale across the globe. In this respect, Sodexo comes in not only as an investor but as a strategic partner, bringing along with itself its 100 million users in 80 countries.
Aurelien Sonet, CEO, Sodexo Benefits & Rewards Services stated, “Beyond BRS, Sodexo group would further benefit from Zeta’s comprehensive technological suite of solutions to foster synergies across activities and offer a seamless payment experience to our consumers. Zeta and Sodexo are already working on deploying Zeta’s know-how in several Benefits and Rewards Services subsidiaries across different regions.”