Zeta, a next-generation banking technology provider, has secured a $50 million investment from U.S.-based healthcare and financial services firm Optum, elevating its valuation to $2 billion. This marks a significant increase from its previous valuation of approximately $1.45 billion during its last funding round in 2021.
Founded in 2015 by Bhavin Turakhia and Ramki Gaddipati, Zeta offers a cloud-native, API-first banking platform designed to modernize financial institutions' infrastructure. The platform supports a range of products, including credit cards, checking and savings accounts, and unsecured loans.
Zeta's SaaS suite encompasses various offerings:
- Tachyon: Core Banking & Issuer Payments Suite
- Photon: Merchant Acquiring & Payments Service Provider Suite
- Neutrino: Digital Banking & AI Applications Suite
- Saturn: Issuer Operations & Servicing Suite
- Luminos: Customer Engagement & Rewards Suite
- Electron: Commercial Cards & Benefits Suite
- Quark: Data & Intelligent Applications Suite
To date, Zeta has supported over 25 million accounts on its cloud-native processing platform, Tachyon, and is on track to add 25 million more with contracts already in progress.
Strategic Investment and Future Plans
The recent $50 million investment from Optum is considered strategic, with plans for close collaboration between the two companies. Zeta has invested approximately $400 million in technology since its inception and aims to achieve profitability by March 2026, targeting an annualized revenue run rate exceeding $100 million.
The company is currently in discussions with up to 22 of India's top banks to implement its products, aiming to finalize several long-term contracts within the next 12 to 18 months. Additionally, Zeta is focusing on enabling credit on UPI (Unified Payments Interface) for major banks in India, viewing it as a significant growth opportunity.
Our Opinion on the News
Zeta's latest funding round and increased valuation underscore the growing demand for modern banking technology solutions. The strategic partnership with Optum not only provides additional capital but also opens avenues for integrating financial services within the healthcare sector. As Zeta continues to expand its client base and product offerings, its focus on cloud-native, API-driven solutions positions it well to capitalize on the ongoing digital transformation in the financial industry.