Zeta, a provider of banking software for banks and fintech startups, has raised $50 million and is currently being valued at $2 billion, rising from a $1.15 billion price tag in 2021. The latest investment was from American healthcare company Optum. Previously, the startup raised $250 million in a round led by SoftBank Vision Fund 2.
Bengaluru-based Zeta was founded in 2015 by Bhavin Turakhia—who also founded Titan, Flock, Radix, and Codechef—and Ramki Gaddipati.
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Turakhia announced the valuation in an X post, where he stated: “Stoked to share that Zeta has secured a new strategic investment, pushing our valuation to $2B! Huge thanks to our customers, partners, investors, and the incredible Zeta team.”
Turakhia also said in an interview, “In banking, 60%-70% of institutions still operate on mainframes — many created before some of us were even born.” He compared it to the industry’s gradual shift to cloud computing, where banks initially managed their own data centers before adopting services like AWS and Azure.
Turakhia added that he expects a similar evolution in core banking technology, though the stakes are higher there, since that involves replacing what he calls “the heart and soul of the bank” — systems that process payments and manage accounts.
Zeta helps banks use modern tech and cloud infrastructure to launch and manage credit cards, checking accounts, and loans. It also works with Pluxee, a global corporate benefits provider, and Sparrow Financial, a U.S.-based credit card issuer.
Zeta has over 1,700 employees across the U.S., Middle East, and Asia. The U.S. is its biggest market, followed by India, where it generates an annual revenue of more than $50 million.
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Zeta says it has invested about $400 million in its platform since inception and expects to become profitable by March 2026. It offers modules for core banking, payment processing, fraud detection, and customer engagement.
“Through the next decade, we intend to capture 25% of the market share,” Turakhia said. “That has never been done before, because a vast majority of the market share in this industry was captured decades ago and has mostly been through acquisitions.”