FinTech News
Banking Tech Provider Zeta Announces $50 Million Funding Round
The banking technology company Zeta has announced its latest funding and a milestone valuation.
About the round:
This week, Zeta announced that it had raised an additional $50 million. While the company didn’t specify, this was a Series D according to Crunchbase. The site also states that the round was led by Optum.
Notably, the latest round values Zeta at $2 billion, which marks a 70% increase from the $1.15 billion pre-money valuation the company saw for its 2021 Series C. That $250 million round was led by Softbank Vision Fund 2. To date, the company has now raised $390 million.
About Zeta:
Zeta (not to be confused with the family budgeting and banking app of the same name) is a SaaS company that enables banks and FinTechs to launch banking products, such as credit cards, checking accounts, and more. Some of Zeta’s clients include India’s HDFC Bank, corporate benefits provider Pluxee, and non-prime card issuer Sparrow Financial. The company’s customers have issued more than 25 million cards using Zeta’s platform.
What they’re saying:
Speaking on the company’s success so far, Zeta’s CEO and co-founder Bhavin Turakhia said, “We are incredibly excited at the pace at which clients are embracing our modern stack. Over the past few years, we have supported over 25 million accounts on our cloud-native processing platform Tachyon and are on track to add 25 million more with contracts already in flight.”
Turakhia added, “Our clients are breaking away from decades of legacy systems to deliver amazing digital experiences thereby increasing their customer satisfaction and accelerating new user acquisition.”
Additionally, Zeta’s other co-founder Ramki Gaddipati stated, “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. While the past few years have been challenging for the banking-tech industry, our organization has delivered multiple winning programs for our clients in record times.”
My thoughts:
Maybe I’m just nerdy/noisy but I think it’s interesting that Zeta didn’t highlight its lead investor for this round. I’m sure there are business reasons for this that are beyond my comprehension but it seems strange.
Moving on from that, though, even though $50 million is a much smaller round than their 2021 Series C, the rise in valuation is significant. That’s especially true when you look at how other FinTech values have trended during this period. All of this would suggest that Zeta is headed in a good direction.
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