The startup plans to use the proceeds for speeding up its growth in the US and Europe
SoftBank invests $250m in banking tech startup Zeta. (Credit: Pete Linforth from Pixabay)
California-based banking tech startup Zeta has raised $250m in a Series C funding round with investment from Japan’s SoftBank to take its valuation to $1.45bn.
SoftBank made the investment through SoftBank Vision Fund 2.
Zeta has built the cloud-native Omni Stack platform to help financial institutions in processing debit, credit, prepaid, loans, authentication, and for management of fraud and risk.
The Omni Stack platform is made up of Zeta Tachyon Credit, Zeta Tachyon Debit, Zeta Tachyon Loans, Zeta Tachyon Deposits, Zeta Tachyon Prepaid, Zeta Tachyon VAS, and Zeta Tachyon Mobile solutions.
Zeta claims that its Omni Stack is the only fully modern platform for financial institutions that can be parallelly deployed for new customers and new programmes without removing legacy technology.
The banking tech startup claimed further that financial institutions across the world by leveraging its Omni Stack platform have boosted their income, enhanced customer engagement, and could cut down fraud.
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’s customers include more than 10 banks and 25 fintechs located across eight countries. Its customers include Sodexo, HDFC Bank, and others.
Sodexo also took part in the Series C round as an additional minority investor.
The proceeds of the financing round will be used by the banking tech startup for fast-tracking its growth in the US and Europe. This includes scaling its operations and also its team and platform for coping up with the demands of its growing customer base.
Zeta CTO and co-founder Ramki Gaddipati said: “As the world moves to real-time payments and digital financial services, the number of transactions per day between FIs and customers are expected to grow exponentially. The increasingly digital world represents evolving security, privacy and data protection challenges to banks.
“The industry needs systems reinvented with security, privacy, scalability and reliability as the core foundations. Zeta’s Omni Stack answers that need.”