Banking-tech unicorn Zeta has raised $50 million from US-based healthcare company Optum in a Series D round, valuing it at $2 billion.
Zeta had previously been valued at a pre-money valuation of $1.15 billion, when it raised $250 million from Softbank Vision Fund 2 and other investors in 2021.
Founded in 2015 by Bhavin Turakhia and Ramki Gaddipati, Zeta’s cloud-native software-as-a-service offerings help banks and fintech launch and manage products such as credit cards, checking accounts, savings accounts, and unsecured loans, among others. Zeta is also backed by Sodexo and Mastercard.
“We have no current use for the funds. It was an opportunistic raise from a strategic investor and was not something we were planning to do,” global CEO and co-founder Bhavin Turakhia told FE. He added that the fundraise, however, adds to the company’s safety net and cash reserve.
The company has spent between $350-400 million on its technology over the years and expects to keep spending roughly $50 million every year to strengthen its tech offerings. Zeta’s flagship tech platform is Zeta Tachyon, its credit card processing stack.
Over the next 5-7 years, Turakhia expects to capture between 20-25% market share in its largest markets- India and the US. Currently, it has less than 5% market share in India and less than 2% market share in the US.
Zeta’s list of marquee clients includes HDFC Bank, India’s largest private lender, with whom it has launched a suite of products including Pixel – a digital-native credit card program. Turakhia hopes to add 3-5 more such marquee clients going ahead.
The company hopes to turn profitable by March 2026 with revenues between $100-$200 million in FY26. Zeta did not disclose its current overall revenue and bottom line, which is spread across its global entities. However, its India parent entity Better World Technologies posted a net profit of Rs 119.8 crore in FY24, up from Rs 21.9 crore in FY23. Revenue rose 9% to Rs 893 crore.