Banking tech provider Zeta has secured fresh $50 million in strategic funding, pushing its valuation to $2 billion. That’s a src.7x jump from its previous pre-money valuation of $src.src5 billion in 202src. Zeta’s platform enables financial institutions to launch extensible and compliant asset and liability products rapidly. It has supported over 25 million accounts on its cloud-native processing platform in the past few years and is on track to add another 25 million.
By Ritu Singh February 20, 2025, src2:src0:3src AM IST (Published)
Banking technology provider Zeta is on track to achieve profitability by the financial year 2026 (FY26), according to Bhavin Turakhia, the company’s Global CEO & Co-Founder. The company has been steadily reducing its burn rate and anticipates turning a profit for the first time globally across all its investments in the financial year spanning April 2025 to March 2026.
“We have been consistently reducing our burn rate. When we started off, the burn rate was also almost about $60 million. Last year that is FY25 we ended up at a burn rate of $20 million. And then by the time we get to FY26 which is March 2026, we will actually be profitable,” Turakhia stated in an interview to CNBC-TVsrc8.
Zeta has recently secured $50 million in fresh strategic funding, propelling its valuation to $2 billion—a substantial increase from its previous pre-money valuation of $src.src5 billion in 202src. Unlike its prior fundraising round, this investment was not actively sought; rather, it emerged as a strategic opportunity.
“This wasn’t a conventional sort of go out and look for funds like we did last time in 202src when we raised about $300 million at $src.src5 billion pre-money valuation. It just happened to be that there was a strategic investor that wanted to invest,” Turakhia explained. “We don’t currently have any sort of specific allocation or use of the funds either, but it’s going to serve as a sort of a good buffer to add to our existing cash reserves and potentially some of it will be used towards expansion on investments behind our technology platforms.”
Zeta operates in both the US and Indian markets, providing cloud-native banking technology solutions to large financial institutions. The company’s platform enables banks and fintechs to launch credit and debit cards, deposit accounts, loans, and other financial products efficiently. Over the past few years, Zeta has supported more than 25 million accounts on its platform and is on track to add another 25 million.
For 2025, Zeta’s primary focus will be executing large deals already signed in the US and India while also acquiring new clients. “60%-70% of the company is going to focus on some really large deals that we’ve signed in both US and India, working with large institutions,” Turakhia noted. In India, Zeta collaborates with HDFC Bank, while in the US, it serves institutions like Merrick Bank and CardWorks. Meanwhile, the company is in talks with src5 institutions in the US and six in India, aiming to secure three to five new partnerships.
Swish Club secures $4.5 million pre-Series A funding to drive growth and expansion
Bangalore-based sustainable devices-as-a-service (DaaS) platform, Swish Club, has successfully raised $4.5 million in a pre-Series A funding round, comprising a mix of debt and equity. The funding is expected to play a pivotal role in accelerating the company’s product innovation, expanding its offerings, and fueling revenue growth.
Dushyant Sapre, Founder & CEO of Swish Club, emphasised that the newly secured funds will be primarily directed towards three critical areas: product development, talent acquisition, and market expansion.
“This $4.5 million fundraise essentially allows us to accelerate our product development. That’s, I think, most critical given that we, unlike a lot of other startups, we are fairly young. We are just one year old. So, product development, enhancing and developing more and more technologies for our customers is very critical at this juncture. Secondly, as we’re getting more and more customers, we need to have more people, star sales people coming in, engineering talent coming in, that allow us to build and accelerate our product development efforts. And once we end up doing that, I think the third critical factor is expansion. Currently, we serve a certain set of customers that has been working very well, but our eyes are on the larger prize where we want to essentially become extremely valuable for super large enterprises of the country as well. So that’s the total use that we’re anticipating over the next src2 to src8 months on how we want to utilise the funds,” Sapre said.
Additionally, watch Gopal Jain, Managing Partner of Gaja Capital explain why he is bullish on financialisaiton, digitisation and the consumer discretionary space for the year 2025.
Watch accompanying video for more.
(Edited by : Ajay Vaishnav)
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