Fintech Zeta, which builds technology back-end for banks, expects to be completely profitable in the next 18-24 months.
While the company’s India operations turned profitable in 2022-23(April-March), the global operations are yet to do so.
“We are present in multiple countries with customers in various geographies. From an overall perspective, we will be profitable in 18-24 months,” said Ramki Gaddipati, co-founder and chief technology officer, Zeta.
While the company’s founders did not disclose the global numbers, they re-emphasised that the firm is on the path to profitability.
“We expect our expenses to remain almost the same. Any increase in expense is only towards staff that we need. From a revenue standpoint, we need to only cover an additional $20 million a year in revenue in order to become completely profitable,” said Bhavin Turakhia, co-founder and chief executive officer.
On Friday, the company launched its digital credit as a service offering, which is underpinned by the National Payments Corporation of India(NPCI) credit line on UPI scheme.
The company’s offering includes pre-integrated systems to fuel processes origination, issuance, and collection.
The service also comes with pre-bundled services to reduce operational overhead.
The offering helps banks to build customisable credit products ranging from secured loans backed by tangible assets to unsecured financing options for personal and business needs.
Founded in 2015, the banking technology company attained the unicorn status in 2021. Its current valuation stands at $1.5 billion.
The company has spent $360 million on research and development in the last nine years.
The company’s digital stack enables banks to launch various products like including credit cards, unified payments interface(UPI) on credit, loans, and deposits.
“When it comes to banking ecosystem, the adoption journey of the bank will reach maturity in three years. At the moment, we are targeting 25-30% of the UPI on credit ecosystem. It is a journey until 2030,” Gaddipati said.
Currently, the company has over 25 million live accounts hosted on its platforms in India and US. In the next six years, an additional 60 million accounts will be migrated on to the platform.