Banking-tech firm Zeta has raised USD 50 million (~INR 434.3 crore) in strategic funding from US-based healthcare giant Optum. The deal pushes Zeta’s valuation to USD 2 billion (~INR 17,375 crore ), reflecting a 70% jump from its last known valuation of USD 1.15 billion (~INR 10,000 crore) in 2021 when it secured USD 250 million (~INR 2.170 crore) from SoftBank Vision Fund 2 and other investors.
Strategic Funding with Long-Term Gains
Founded in 2015 by Bhavin Turakhia and Ramki Gaddipati, Zeta provides cloud-native, API-first banking technology solutions. Its SaaS platform enables banks and fintech firms to manage credit cards, savings accounts, checking accounts, and unsecured loans. The company’s key product, Zeta Tachyon, supports over 25 million accounts, with another 25 million set to onboard through existing contracts.
“This was an opportunistic raise, not a necessity. The funds give us a stronger financial cushion,” said Bhavin Turakhia, Zeta’s Global CEO and Co-founder.
Clients and Expansion Strategy
Zeta serves major financial institutions like HDFC Bank, IDFC First Bank, Kotak Mahindra Bank, and RBL Bank. Its product lineup includes Pixel, a digital-native credit card program, and banking solutions for global corporate benefits provider Pluxee and US-based issuer Sparrow Financial.
The company is focused on expanding its market share in India and the US, aiming for 20-25% penetration in both regions within five to seven years. Currently, it holds less than 5% market share in India and under 2% in the US.
Financial Growth and Profitability Goals
Zeta targets profitability by March 2026, with projected revenue between USD 100 million and USD 200 million in FY26. While its global revenue remains undisclosed, its India-based parent, Better World Technologies, posted a net profit of INR 119.8 crore in FY24, up from INR 21.9 crore in FY23. Revenue from Indian operations rose 9.42% year-on-year to INR 893 crore in FY24.
Since its inception, Zeta has invested around USD 400 million (~INR 3,500 crore) in technology and continues to allocate USD 50 million (~INR 430 crore) annually for infrastructure enhancements. The company operates on a pay-per-use model.
Shaping the Banking Tech Ecosystem
Zeta positions itself as a modern banking tech provider, enabling institutions to move from legacy systems to cloud-native infrastructure. “About 60-70% of banks still run on outdated mainframes. We help them transition to digital-first banking,” said Turakhia.
The firm is also expanding in India’s credit-on-UPI segment, aiming for a 50% market share. Its UPI-linked credit stack, launched in May 2024, helps banks digitize credit origination, distribution, and collection.
Zeta has over 1,700 employees worldwide, with 70% engaged in technology roles. It operates across India, the US, Brazil, Spain, the Philippines, and Vietnam.
Future Outlook
Zeta is negotiating with over 20 banks in India to secure long-term contracts in the next 12-18 months. “We’re targeting 25% market share in our largest regions. This level of disruption in banking tech hasn’t happened before,” Turakhia stated.
With a strong deal pipeline, growing global presence, and investor backing, Zeta is positioned to reshape the banking technology landscape.
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