Zeta’s valuation zooms to $2 billion after $50 million funding

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Subscribe to enjoy similar stories. Banking software provider Zeta has raised $50 million in its latest funding round at a valuation of $2 billion. The US-based startup achieved unicorn status back in 2021, when it raised $250 million at a valuation of $1.15 billion in a funding round that included Japanese investment firm SoftBank.

The latest investment was made by US-based healthcare services firm Optum, a subsidiary of the UnitedHealth Group. Zeta’s full-stack system supports everything from core banking products to digital banking applications. “For the most part, we believe the cash is just going to sit in the bank as a buffer, it’s always nice to have a cash buffer in this market and industry," Zeta’s global chief executive officer (CEO) and founder Bhavin Turakhia told Mint in an interview.

The company says the $50 million is most likely going to go into its cash reserves, which can be used to deal with unexpected expenses. Also read | Zeta has razor-sharp focus on credit on UPI in India: CEO Bhavin Turakhia says, after aggressive expansion spree So far, the company has invested approximately $400 million in technology since its founding in 2015. Zeta says it’s on the path to profitability and will be in the green by March 2026.

“Our burn rate has consistently come down to a point where we’re exceeding our targets," Turakhia said. The banking technology space is a challenging place to be in, at a time when central banks worldwide are tightening regulations to protect consumers, and competition in the fintech sector is heating up. But Turakhia believes there is opportunity in the sector like never before.