If you’ve ever wondered why your bank still feels stuck in the Stone Age—clunky interfaces, slow updates, and outdated systems—you’re not alone. But a Bengaluru-based fintech startup named Zeta is on a mission to drag banking into the 21st century, one cloud-powered solution at a time. And investors are taking notice.
In its latest funding round, Zeta has secured $50 million from American healthcare giant Optum, catapulting its valuation to a staggering $2 billion. That’s a 70% jump from its previous valuation of $1.15 billion back in 2021 when SoftBank Vision Fund 2 led a $250 million investment. For context, that’s like going from a unicorn to a double-horned mythical creature in just a few years.
Founded in 2015 by serial entrepreneur Bhavin Turakhia and tech whiz Ramki Gaddipati, Zeta specializes in helping banks and fintech startups modernize their operations. Think of it as a digital makeover for institutions that have been running on mainframes older than some of their customers. “Sixty to seventy percent of banks still operate on these ancient systems,” Turakhia told me in an interview. “It’s like they’re using rotary phones while the rest of us are FaceTiming.”
Zeta’s secret sauce? A cloud-native platform called Tachyon , which allows banks to launch and manage everything from credit cards to checking accounts with ease. The company already supports 25 million accounts globally and has contracts lined up to add another 25 million. Its flagship client in India, HDFC Bank—the country’s largest private lender—has even rebuilt its popular PayZapp digital payments platform using Zeta’s tech.
But Zeta isn’t just about India. The U.S. is its biggest market, where it partners with companies like Pluxee, a global corporate benefits provider, and Sparrow Financial, a credit card issuer catering to non-prime customers. In fact, Zeta generates over $50 million annually in revenue, mostly from its international operations.
The startup’s timing couldn’t be better. With consumer demand for seamless digital experiences skyrocketing, banks are finally waking up to the need for change. “Our clients are breaking free from decades of legacy systems,” says Turakhia. “They’re delivering amazing digital experiences that boost customer satisfaction and attract new users.”
One of Zeta’s standout innovations is its credit-on-UPI stack , launched earlier this year. UPI, or Unified Payments Interface, is India’s wildly successful real-time payment system, and Zeta’s integration of credit facilities into this ecosystem has been a game-changer. As of October, the company was processing around 2 million transactions daily through this product alone. Its goal? To capture half of the burgeoning credit-on-UPI market.
Despite its lofty ambitions, Zeta isn’t burning cash recklessly. The company has invested roughly $400 million into its platform since inception and expects to turn profitable by March 2026. “We didn’t need to raise this money,” Turakhia admits. “This $50 million will likely sit untouched in the bank. It’s more of a vote of confidence in our journey.” With $340 million raised to date and a pay-per-use model, the firm’s eyeing profitability by 2026. Its India revenue hit ~$107 million (₹893 crore) in FY24, with profits up 5.4x to ~$14.3 million (₹120 crore).
With 1,700 employees spread across the U.S., Middle East, and Asia—over 70% of whom work in tech roles—Zeta is well-positioned to scale. And if Turakhia’s track record is anything to go by, success seems inevitable. Before co-founding Zeta, he sold four internet businesses to Endurance International Group for $160 million. His most recent venture, Titan, a business-email provider, was valued at $300 million after being backed by Automattic in 2021.
Looking ahead, Zeta aims to capture 25% of the global banking tech market within the next decade—a feat no other player in the industry has achieved without acquisitions. “This is uncharted territory,” says Turakhia. “But we believe the future belongs to those who embrace modern technology.”
FAQs:
What is Zeta’s core business?
Zeta provides cloud-native SaaS solutions to modernize banking infrastructure, enabling credit cards, loans, and digital payment systems.
How does Credit-on-UPI work?
It integrates credit cards with India’s UPI payment network, letting users borrow directly through apps like Google Pay or PhonePe.
What is UPI, and how does Zeta use it?
UPI is India’s real-time payment system. Zeta integrates credit facilities into UPI, enabling banks to originate, distribute, and collect payments digitally.
Who are Zeta’s major investors?
SoftBank, Optum, and Mastercard
Why is Zeta targeting legacy banking systems?
Most banks rely on outdated mainframes; Zeta’s modular tech reduces costs and speeds up digital product launches.
What’s Zeta’s revenue model?
Pay-per-use pricing, charging banks based on transaction volume and active accounts.
Who is Bhavin Turakhia?
Bhavin Turakhia is the co-founder and CEO of Zeta. He’s also a serial entrepreneur who has successfully sold multiple tech businesses in the past.
