Zeta, a banking software provider based in Bangalore, has successfully raised $50 million in funding from Optum, valuing the company at $2 billion. This figure marks a significant 70% increase from its previous valuation of $1.15 billion in 2021. Founded in 2015, Zeta aims to revolutionize banking by transitioning institutions from outdated mainframe systems to a modern cloud infrastructure. Currently serving 25 million accounts with plans to add another 25 million, Zeta's major clients include HDFC Bank in India and various U.S. banks, as the company anticipates future growth and profitability by 2026.
In banking, 60%-70% of institutions still operate on mainframes - many created before some of us were even born," Turakhia said in an interview.
He expects a similar evolution in core banking technology, though with higher stakes since it involves replacing what he calls "the heart and soul of the bank" - systems that process payments and manage accounts.
Zeta says it serves 25 million accounts through its platform and has contracts to add another 25 million.
Zeta’s executives cautioned that partnerships with large U.S. banks can take years to materialize.
Collection
[
|
...
]