Zeta, a banking tech startup based out of Bengaluru, India, has raised $250 million in funding from Softbank Vision Fund 2 in a Series C investment round, bringing the total valuation of the startup to $1.45 billion, in one of the biggest single investments amongst banking tech start-ups throughout the world.
Incorporated in 2015 by Bhavin Turakhia, CEO and Ramki Gaddipati, CTO, Zeta has the mission of becoming “The World’s First Omni Stack for Banks”. The banking tech start-up offers its unique product, Omni Stack, which provides banks and financial institutions (FIs) with the operational capability to launch products & services of interest to users. The tech startup also seeks to provide the digital consumer of today with a better user experience, claiming that the prevalent software used by banks is heavily outdated.
How does it want to do this? By uprooting the existing software technology used by banks with a modernized and fully functional platform to enhance security, privacy and reliability with its product, Omni Stack.
In a statement released by Zeta, CEO Bhavin Turakhia says, “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.”
The start-up seeks to bring modernized and curated solutions to such financial institutions. He goes on to say:
“With Zeta, FIs can leverage a modern, cloud-native platform and improve speed to market, agility, cost to income ratio and user experience.”
Zeta $250 Million Funding Led by SoftBank
Sodexo also took part in the $250 million investment by SoftBank, participating as a minority investor in the Series C funding round. Zeta will use the funding to scale its operations throughout the US, Europe and Indian markets in order to meet the expanding demands of its customer base.
Zeta will certainly welcome its upgraded status of being a ‘unicorn’. Bhavin Turakhia, CEO, says “We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech.”
Softbank certainly believes in the vision set out by Zeta. Munish Varma, Managing Partner of SoftBank Investment Advisers echoes the sentiments of Bhavin.
According to the release by Zeta, Varma states, “Most banks still employ technology which 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.”
At present, Zeta has more than 24 FinTechs and 10 banks as its customers across 8 countries. The funding by SoftBank will take it further in its endeavour to provide a modernized and seamless for banking institutions.
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