For other uses, see Zeta (disambiguation).

Zeta is a banking software company that was founded by Bhavin Turakhia and Ramki Gaddipati in 2015. The company provides credit and debit card issuer processing, BNPL, core banking and "mobile experiences".[5] Zeta provides its products to banks and fintechs.[6][7][8]

The company achieved unicorn status in 2021.[9][10]

History

The company was founded in April 2015 by Bhavin Turakhia[11] and Ramki Gaddipati.[12] Its initial offerings were for employee tax benefits, automated cafeterias, employee gifting, and digital payments.[13] In 2016, Bhavin Turakhia invested around $19 million into Zeta.[14] Initially, Zeta payments were only supported by the MasterCard network, but later the company also tied up with the National Payments Corporation of India's RuPay.[15]

In June 2017, the company invested 5–10 crore to buy a minority stake in an HR company called ZingHR.[16][17]

Zeta has partnerships with IDFC Bank,[18] Sodexo,[19] Excelity Global,[20] Kotak Mahindra Bank[21][22] and RBL Bank.[15] Zeta launched the first employee benefits survey in India along with Nielsen Holdings in April 2018.[23] It also bought a minority stake in PeopleStrong in January 2018.[24] In 2020, Zeta launched its technology platform-as-a-service in the Philippines and Vietnam with Sodexo being its first client in these countries.[25]

In 2022, Zeta partnered with MasterCard to launch credit card issuers worldwide.[26][27] In 2023, the company partnered with financial crime prevention company Featurespace to build fraud detection solutions for US credit card issuers.[28][29] Zeta launched its digital credit as a service in 2024 built on the NPCI’s Credit Line on UPI (CLOU) for Indian banks.[30] The company partnered with HDFC Bank to launch the upgraded version of the PayZapp app with CLOU offering[31][32][33] and also launched its app-based customizable digital card range PIXEL with them. The company also partnered with Sparrow Financial in the same year to power its credit card program for non-prime customers in the US.[34]

The company operates across several geographies in North America, the United Kingdom, Brazil, the Philippines, Italy, Spain, and Vietnam.[35]

Funding

In 2019, Zeta received an investment from Sodexo BRS at a valuation of $300 million[36] and this unit also merged with Zeta’s employee benefits business.[37]

In 2021, Zeta secured a Series C investment of $250 million from SoftBank Vision Fund 2 valuing Zeta at $1.45 billion.[38] This is one of the largest single investments in a banking tech startup globally.[39]

In March 2022, Zeta secured an additional $30 million from Mastercard at a valuation of $1.5 billion.[40]

Products

Tachyon

Zeta Tachyon is a credit processing platform for banks that services credit card programs across issuance, core payments, BNPL loans, fraud and risk, and rewards with a suite of managed services.[41]

Digital Credit as a Service

Digital Credit as a Service provides credit origination, issuance, and collections services to banks based on the National Payments Corporation of India’s (NPCI) Credit Line on Unified Payments Interface(UPI).[30] Zeta processes 2 million transactions every day because of growth in credit on UPI products.[42] It estimates that Credit Line on UPI could surpass $1 trillion in transaction value by 2030.[43]

Awards

  •  Zeta won the ‘Best of Show’ Award at Finovate West Digital 2020 for their product demo on Tachyon.[44][45]
  • It was also selected as the 'Retail Banking Fintech of the Year 2022' by the Aite-Novarica Group.[46]
  • CB Insights’ 2022 Annual Report recognized Zeta as one of the most promising fintech companies in the world.[47]
  • HDFC Bank’s PayZapp app, by Zeta, won the 'Celent Model Bank Award for Payments Innovation' in 2024 for creating a seamless user experience with enhanced security features.[48]
  • Sparrow’s card by Zeta won in the ‘Best Banking Card Product’ category at Tearsheet’s The Big Bank Theory Awards 2024.[49]

See also

References

  1. ^ Penn, David (27 August 2024). "HDFC Bank Turns to Zeta to Power its Credit Line on UPI Offerings". Finovate. Retrieved 6 September 2024.
  2. ^ "Next-Gen Payment Card Processing and Issuing". Zeta US. 14 June 2024. Retrieved 6 September 2024.
  3. ^ https://www.finextra.com/blogposting/26853/unraveling-the-cobol-conundrum
  4. ^ https://www.outlookbusiness.com/interviews/extremely-bullish-about-digital-credit-in-india-zetas-sivaram-kowta-2
  5. ^ "Big data and analytics company Zeta Interactive to expand presence in India". The Economic Times. 6 October 2015. Retrieved 17 May 2024.
  6. ^ Money, control (27 November 2019). "Zeta's Fusion:the bridge between banks and fintechs". Moneycontrol.com. India.
  7. ^ New Indian, Express (30 January 2020). "Zeta to smoothen customers' banking experience with its platform Tachyon". New Indian Express.
  8. ^ Wire, PTI (7 October 2020). "Service-providing platform launchedfor fintech firms". The Week. The Hindu.
  9. ^ "How private equity major SoftBank's investment into Zeta made it India's newest unicorn startup". www.fortuneindia.com. 4 May 2021. Retrieved 20 January 2025.
  10. ^ Dhanjal, Swaraj Singh (24 May 2021). "Zeta raises $250 million from SoftBank fund, turns unicorn". mint. Archived from the original on 24 May 2024. Retrieved 20 January 2025.
  11. ^ Balachandran, Manu (23 August 2016). "The world's newest billionaires are two Indian brothers who founded a tech company in their teens". Quartz.
  12. ^ "Bhavin Turakhia now bets on Zeta". The Times of India. 30 September 2016. Archived from the original on 25 March 2017.
  13. ^ "Zeta: Pathbreaking digital solutions for employee benefits & rewards". Express Computers. 5 December 2018.
  14. ^ "Directi's Turakhia now bets on cloud venture Zeta". The Times of India. 30 September 2016.
  15. ^ a b "Zeta ties up with RuPay for broader acceptance network". The Economic Times. 11 April 2017.
  16. ^ Singh, Arti (29 June 2017). "Bhavin Turakhia's digital meal voucher venture Zeta backs ZingHR". VCCircle.
  17. ^ "Zeta Picks Up Stake in ZingHR for an Undisclosed Amount". BusinessWorld. 29 June 2017.
  18. ^ Bhakta, Pratik (9 August 2017). "IDFC Bank partners with Zeta for digital payments solution". The Economic Times.
  19. ^ Pratap, Ketan (23 May 2017). "Sodexo Partners Zeta to Offer Employee Benefits Through Card, Other Digital Solutions". NDTV.
  20. ^ "Excelity Global partners with Zeta". India Today. 8 June 2017.
  21. ^ "Kotak Bank, Zeta launch digital prepaid solution for employees". New Indian Express. 17 September 2017.
  22. ^ "Payments tech co Zeta ties up with Kotak Mahindra to tap corporates". The Economic Times. 17 September 2017. Retrieved 23 October 2017.
  23. ^ Sarkar, Brinda (23 April 2018). "62% of salaried employees find paper bills time-consuming: Study". The Economic Times.
  24. ^ Guptoo, Bishwaroop (16 January 2018). "Bhavin Turakhia-promoted Zeta puts funds in PeopleStrong HR Services". The Times of India.
  25. ^ Sil, Debarghya (1 July 2020). "Bangalore-Based Zeta Expands Its Footprint In Vietnam and Philippines". Entrepreneur. Retrieved 17 May 2024.
  26. ^ www.ETCIO.com. "Zeta and Mastercard partner to power next-gen credit processing for banks and fintechs - ET CIO SEA". ETCIO.com. Retrieved 23 January 2025.
  27. ^ "Zeta enters into global partnership with Mastercard, eyes $300 mn in revenues through tie up". Moneycontrol. Archived from the original on 1 October 2022. Retrieved 23 January 2025.
  28. ^ Muhn (@julieschicktanz), Julie (21 March 2023). "Zeta and Featurespace Partner to Combine Card Processing with Fraud Detection". Finovate. Retrieved 23 January 2025.
  29. ^ "Zeta and Featurespace Join Forces to Offer Innovative Credit Card Processing and Fraud Detection Solution". FF News | Fintech Finance. 23 March 2023. Retrieved 23 January 2025.
  30. ^ a b Goel, Sneha Shah,Samiksha (10 May 2024). "Fintech unicorn Zeta launches UPI-linked credit-as-a-service for banks | Mint". mint. Archived from the original on 30 August 2024. Retrieved 23 January 2025.{{cite news}}: CS1 maint: multiple names: authors list (link)
  31. ^ "HDFC Bank to launch revamped app, website next year: Report - CNBC TV18". CNBCTV18. 25 September 2023. Retrieved 20 January 2025.
  32. ^ "HDFC Bank taps Zeta's DCaaS solution to offer Credit Line on UPI". IBS Intelligence. Retrieved 20 January 2025.
  33. ^ www.ETGovernment.com. "HDFC Bank partners with Zeta for its credit line on UPI offerings - ET Government". ETGovernment.com. Retrieved 23 January 2025.
  34. ^ "Zeta Powers Sparrow's Industry-leading Credit Card for the Underserved". finance.yahoo.com. Archived from the original on 18 January 2025. Retrieved 23 January 2025.
  35. ^ Bhalla, Tarush (6 June 2021). "Zeta eyes presence in 30 countries in the next two fiscals". mint. Archived from the original on 10 October 2024. Retrieved 20 January 2025.
  36. ^ "Fintech firm Zeta's valuation climbs to $300 million in its first external funding round". TechCrunch. 23 July 2019. Retrieved 23 July 2019.
  37. ^ Saxena, Ridhima (25 July 2019). "Zeta's employee benefits business merges into Sodexo BRS India". mint. Archived from the original on 13 February 2024. Retrieved 20 January 2025.
  38. ^ "Zeta Closes $250 Million SoftBank Funding At $1.5 Billion Valuation". PYMNTS.com. 24 May 2021. Retrieved 17 May 2024.
  39. ^ Andreasyan, Tanya (26 May 2021). "SoftBank pours $250 million into banking tech start-up Zeta". FinTech Futures. Retrieved 17 May 2024.
  40. ^ "Bloomberg - Fintech Startup Zeta raises $30 Million, Teams with MasterCard". www.bloomberg.com. Retrieved 28 January 2025.
  41. ^ "Zeta and Mastercard partner to power next-gen credit processing for banks and fintechs". newsroom.mastercard.com. Retrieved 28 January 2025.
  42. ^ "Zeta says processing around 2 mn transactions a day amid growing demand for credit on UPI products". web.archive.org. 8 October 2024. Retrieved 28 January 2025.
  43. ^ Shukla, Saloni (22 August 2024). "Credit line on UPI could cross $1 trillion in transaction value by 2030: Zeta". The Economic Times. ISSN 0013-0389. Retrieved 28 January 2025.
  44. ^ Release, ANI Press. "Zeta Tachyon Bags 'Best of Show' Award at Finovate West Digital 2020". Archived from the original on 20 January 2021. Retrieved 28 January 2025.
  45. ^ "Zeta Archives". Finovate. 27 August 2024. Retrieved 28 January 2025.
  46. ^ GlobeNewsWire, Aite-Novarica Group (28 April 2022). "Aite-Novarica Group Announces Winners of the 2022 Banking Fintech of the Year Awards". GlobeNewswire News Room. Retrieved 28 January 2025.{{cite web}}: CS1 maint: date and year (link)
  47. ^ "The Fintech 250: The most promising fintech companies of 2022". CB Insights Research. Retrieved 28 January 2025.
  48. ^ Bareisis, Zilvinas. "HDFC Bank: Connecting Legacy and Innovation with PayZapp | Celent". www.celent.com. Retrieved 28 January 2025.
  49. ^ Rao, Shabih (19 September 2024). "Announcing the winners of The Big Bank Theory Awards 2024". Tearsheet. Retrieved 28 January 2025.
Allikas: https://en.wikipedia.org/wiki/Zeta_India
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