Neobanking startup Zeta is said to be close to joining the burgeoning unicorn club in India with Softbank-led funding round, which is currently being finalised with the Japanese investor.
According to a TechCrunch report, which cited unnamed sources, Japan-based SoftBank is in advanced talks with the startup for leading a $250m Series D round through its Vision Fund 2. The round would value Zeta at over $1bn, up from $300m in its previous Series C round in 2019, when it raised $60m from Sodexo. The round is yet to be closed, the report added.
After other Indian FinTechs Groww and CRED, Zeta will be the third startup to attain unicorn status in April and overall seventh in the month so far.
Founded by Bhavin Thurakia and Ramki Gadipatti in 2015, Zeta is a neobanking platform for issuing credit, debit and prepaid products, enabling banks and financial institutions to launch modern retail and corporate products. The company also helps financial institutions in authentication, fraud and risk management.
With a clientele including RBL Bank, IDFC First Bank, and Kotak Mahindra Bank as its clients along with 14,000 corporates, Zeta’s solutions are used by BFSI issuers in India, Asia and Latin America.
In addition, it enables users to instantaneously generate a digital card for their family members including teenagers.
While the firm initially started by offering tax-saving reimbursements, expense management, salary disbursement, employee rewards and recognition, it now focuses on bank-centric FinTech solutions.
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