Banking technology provider Zeta has raised $50 million in new funding. The investment — from an unnamed strategic investor — boosts the company’s valuation to $2 billion, a significant increase from the firm’s most recent pre-money valuation of $1.45 billion. That valuation followed a capital infusion of $250 million from Softbank Vision Fund 2 and other investors in 2021.
Headquartered in San Francisco, California, Zeta enables financial institutions and fintechs to launch a wide variety of financial products via its modern, microservices-based, API-first, cloud-native, and Headless (MACH) platform. These products include credit cards, checking accounts, savings accounts, unsecured loans, and more. Zeta’s SaaS suite provides solutions for the entire lifecycle of a banking product: core banking and issuer payments; merchant acquiring and payment services; digital banking and AI applications; issuer operations and servicing; customer engagement and rewards; as well as commercial cards and benefits.
“We are incredibly excited at the pace at which clients are embracing our modern stack,” Zeta Global CEO and Co-Founder Bhavin Turakhia said. “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. 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.”
Founded in 2015, Zeta won Best of Show in its debut at our all-digital Finovate conference in 2020. The company returned to the Finovate stage the following year for FinovateFall 2021 in New York. More recently, Zeta has collaborated with fellow Finovate alum Mastercard as part of a five-year partnership and teamed up with Featurespace to combine credit card processing and fraud detection. Last August, Zeta announced that India’s HDFC Bank was leveraging its technology to power its new Credit Line on UPI (CLOU) solutions.
“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,” Zeta Co-Founder Ramki Gaddipati said. “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 time.”
To date, Zeta customers around the world have issued more than 25 million cards on Zeta’s platform. The firm’s card processing capabilities were recognized by Celent in its 2023 Next-Gen Card Issuer Processors in the US report, which noted that, in the words of Celent Head of Retail Banking and Payments Research Zil Bareisis, “Zeta is among the likeliest partners for banks considering a shift to next-gen processing.”
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