Zeta, a banking technology unicorn that counts SoftBank and Mastercard as its investors, said Tuesday it has secured $50 million in investment from US-based healthcare company Optum.
With the latest investment, the company's valuation has jumped to $2 billion, Zeta said in a statement. This is about 1.4x its post-money valuation of $1.45 billion in 2021 when it raised $250 million in a Series C round led by Softbank Group Corp's Vision Fund 2. That round had pushed Zeta into the unicorn club of startups with a valuation of over $1 billion.
The company had also received investment of $30 million from Mastercard and an unidentified fund from the Middle East and North Africa (MENA) region in 2022.
Zeta was founded in 2015 by Bhavin Turakhia and Ramki Gaddipati. It is headquartered in California and has offices in Bengaluru, Mumbai, Hyderabad, and Pune. The company employs more than 1,700 people.
Zeta’s software-as-a-service (SaaS) platform enables banks and fintech companies to launch any asset, liability or payment product for consumers, small and medium businesses, and large companies, through its cloud-native and API-enabled platform. These products include credit cards, checking accounts, savings accounts, among others.
"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," said Turakhia.
Zeta counts HDFC Bank, corporate benefits provider Pluxee (earlier known as Sodexo) and Sparrow Financial, a card issuer for non-prime cardholders in the US, as its clients. Its revenue from operations jumped 9.4% to Rs 893 crore in FY24, as per VCCEdge data, VCCircle's data intelligence platform.