Modern banking tech company Zeta has raised $30 million as a part of strategic investment from Mastercard and other investors, taking the company’s valuation to $1.5 billion.
This is a continuation of the SoftBank led $240 million funding round that Zeta raised in May last year. The round valued the company at $1.45 billion, marking its entry into India’s unicorn club. The fresh infusion of capital will allow Zeta to transform its platform into a single-vendor system, which will help streamline company operations. This will also allow issuers to build versatile and highly customizable card products relatively faster. The partnership would also allow Zeta to use Mastercard’s fraud protection technologies and loyalty programs on its platform.
At present, Zeta continues to be focused on India, the US and Southeast Asia. It will look to launch its solutions in Brazil and the UK by the first half of 2023. Zeta and Mastercard have also announced a five-year global collaboration in addition to the strategic investment. As part of the deal, the companies will launch credit cards with issuers across the world using Zeta’s cloud-native, API-ready credit processing stack.
While there is no direct competition for Zeta, Yap, Decentro and Setu are other companies in the API infrastructure segment. Zeta also competes with the likes of FamPay, Junio, Walrus and Yodda by providing a feature through which users can instantaneously generate a digital card for their family members including teenagers.
The partnership between the two companies commenced in the Asia Pacific in 2018 when Zeta joined Start Path, Mastercard’s global start-up engagement initiative, and has continued to gain traction, with Zeta subsequently joining the Mastercard Developers Partner Network, Engage. Zeta will have access to the Mastercard network via Engage in order to pre-integrate or integrate products and services, such as Mastercard’s Digital First and Fintech Express programs. The initiatives will strive to offer instant customer KYC and verification, as well as instant digital card issuance, provisioning, and usage.
Banking tech platform Zeta raised $30 million as strategic investment from Mastercard
