Zeta’s valuation surges to $2B with $50M investment from Optum

Banking technology provider Zeta has raised $50 million in a strategic investment round from American healthcare company Optum, valuing the company at $2 billion, according to a statement on Tuesday.

The latest valuation marks a 1.7X increase from its prior round in 2021 when the company secured $250 million from SoftBank Vision Fund 2 and other investors at a pre-money valuation of $1.15 billion.

Zeta’s software-as-a-service offerings aim to help banks and fintechs replace legacy systems with modular, API-driven tools for launching products such as credit cards and digital banking services.

“Clients are rapidly adopting our modern stack,” said Zeta’s Global CEO and Co founder Bhavin Turakhia. The company’s cloud-native platform, Tachyon, currently supports over 25 million accounts, with another 25 million expected to be added through existing contracts, he said.

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The funding comes amid what Co-founder Ramki Gaddipati described as a “challenging” period for the banking technology sector. “Our team has delivered multiple successful programs for clients in record time,” Gaddipati said, emphasising the company’s focus on partnerships with regulated financial institutions.

Zeta’s platform, built on microservices and cloud-native architecture, spans core banking, payments, digital banking, and data analytics.

Zeta’s clientele includes major financial institutions such as HDFC Bank, which has partnered with the company on several digital banking initiatives, including its Pixel credit card program. Other customers include corporate benefits provider Pluxee and US-based card issuer Sparrow Financial.

The company employs over 1,700 people, with more than 70% of its workforce in technology roles across the US, Middle East, and Asia.

Zeta India parent Better World Technologies Private Limited's Profit after tax (PAT) reached Rs 119.82 crore in FY24, a substantial rise from Rs 21.94 crore in FY23, marking a 5.4X year-over-year increase. The banking software maker's operations revenue climbed 9.42% from Rs 816.19 crore in FY23 to Rs 893.12 crore in FY24.