Zeta has secured $250 MN in investment from SoftBank Vision Fund 2. This Series C investment values Zeta at $1.45 BN. 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, 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 Bhavin Turakhia, CEO & Co-founder, Zeta. “We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech” Bhavin added.
Munish Varma, Managing Partner, SoftBank Investment Advisers said, “Banking software is a $300 billion industry globally. Most banks still employ technology that 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.”
Ramki Gaddipati, CTO & 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.
Founded by Bhavin Turakhia and Ramki Gaddipati, Zeta’s US HQ is in San Francisco and it has a presence in North America, LATAM, UK, Europe, and Asia. Avendus Capital acted as the exclusive financial advisor on this transaction.