Zeta’s Valuation Jumps To $2 Bn After Funding From Optum

Bengaluru-based banking tech unicorn Zeta has secured $50 Mn (INR 434.3 Cr) in a fresh funding round from Optum at a valuation of $2 Bn.

“Zeta’s mission to be a trusted partner to financial institutions is possible through the patient efforts of the best team ever assembled in banking technology,” said Ramki Gaddipati, CEO APAC & Global CTO, Zeta.

Founded in 2015 by Gaddipati and Bhavin Turakhia, Zeta offers an omni-stack platform to financial institutions for processing and issuing debit and credit cards, offering loans, and fraud and risk management.

Its products are used by banks like RBL Bank, IDFC First Bank and Kotak Mahindra Bank among others. French food services and facilities company Sodexo also uses Zeta’s offerings to process its payments.

Zeta has more than 1,300 employees across US, UK, Middle East, and Asia. The startup claims to have served eight issuers and 30 fintech firms. In total, Zeta says that it has issued more than 10 Mn cards.

Excluding the fresh round, the company has so far raised $340 Mn, since its inception and counts names like SoftBank Vision Fund, Sodexo and Mastercard among its backers.

In May 2021, Zeta raised $250 Mn in a funding round led by Masayoshi Son’s SoftBank. Existing investor Sodexo also participated in the round, which valued the company at $1.45 Bn then.

Besides India, Zeta’s offerings are available in countries like Brazil, Spain, the Philippines, and Vietnam.

On the financial side, the startup reported a profit after tax (PAT) of INR 21.94 Cr in the financial year 2022-23 (FY23) as against a loss of INR 20.7 Cr in FY22. The Bengaluru-based fintech unicorn’s revenue from operations grew almost 33% to INR 816.20 Cr in FY23 from INR 615.05 Cr in the previous fiscal year.