The latest funding brings Zeta’s total value to $1.45bn and is said to be one of the largest single investment raised by a banking tech start-up
Zeta to advance its Omni Stack for banks. (Credit: StockSnap from Pixabay.)
India-based banking tech company Zeta has received $250m financing in a Series C investment round led by SoftBank Vision Fund 2 to advance its Omni Stack for banks.
The new investment round brings Zeta’s value to $1.45bn and is considered as one of the world’s largest single investments in a banking tech start-up, said the company.
Zeta intends to use the funding proceeds to advance its growth in the US, Europe and India, by scaling its operations, team, and platform, to meet its customers’ demands.
SoftBank Investment Advisers managing partner Munish Varma said: “Banking software is a $300 billion industry globally. 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.”
Zeta offers an Omni Stack platform that provides all the functionality required for the banks to launch new products relevant to consumers.
The Omni Stack includes Zeta Tachyon Credit, Debit and Prepaid processing, Zeta Tachyon Loans platform, Zeta Tachyon Deposits, and Zeta Tachyon Mobile offerings.
According to a recent study by Aite Group, 61% of financial institution executives believe investment in the latest technologies is important to improve their customer experience.
Zeta claimed that its fully advanced platform for banks can be simultaneously deployed for new programmes and new customers without displacing legacy technology.
Also, banks across the world have increased income, improved customer engagement and reduced fraud by using its Omni Stack.
The company’s customers include Sodexo, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, SBM Bank India and others.
Sodexo has participated in the investment round as an additional minority investor.
Zeta CEO and co-founder Bhavin Turakhia said: “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. With Zeta, FIs can leverage a modern, cloud-native platform and improve speed to market, agility, cost to income ratio and user experience.
“We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech.”