Dubai-based banking tech startup, Zeta has secured $250 million in investment from Japanese multinational company, SoftBank’s Vision Fund 2.
The Series C investment values Zeta at $1.45 billion and it is one of the largest single investments in a banking tech startup globally. Founded by serial entrepreneur Bhavin Turakhia along with Ramki Gaddipati, the startup also has a presence in North America, Latin America, UK, Europe and Asia.
Banks work with dozens of tech vendors, most offering discrete pieces of functionality and archaic stacks that are older than the internet. Zeta’s Omni Stack provides all the functionality that banks need to launch new products relevant to consumers today.
“Most banks are using decades-old software built when Mainframes and Cobol were in vogue. They have been slow to innovate and provide poor user experiences. With Zeta, FIs can leverage a modern, cloud-native platform and improve speed to market, agility, cost to income ratio and user experience.”
With the SoftBank investment, the company is ready to disrupt the stagnant landscape of banking tech. Zeta counts amongst its customers, over 10 banks and 25 fintechs, across 8 countries, including Sodexo, a leading issuer of Employee Benefits & Rewards with over 30 million global users and HDFC Bank, the 14th largest bank by market cap in the world and others.
Munish Varma, Managing Partner, SoftBank Investment Advisers said, “Banking software is a $300 billion industry globally. Most banks still employ technology that 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.”
Ramki Gaddipati, chief technical officer and co-founder of Zeta said “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.”
A recent study by global research firm Aite Group found that 61 percent of financial institution executives believe investment in newer technologies is the most important measure they must take to improve their customer experience. Banks across the globe have increased income, improved customer engagement and reduced fraud by leveraging Zeta’s Omni Stack.