This is a follow-up to Zeta’s $240 million fundraising round last May, backed by SoftBank Vision Fund. The company was valued at $1.45 billion in the transaction, making it India’s first unicorn. A unicorn is a privately held company with a market capitalization of $1 billion or more.
The investment by Mastercard in Zeta is part of a five-year strategic agreement in which both businesses will provide their credit management and card-processing product stacks. The corporation refused to give the identities of the other investors who took part in this round.
Zeta and Mastercard expect to issue 30-40 million debit and credit cards and handle $60 billion in total payment value through their banking and payment solutions throughout the course of the cooperation. Zeta will also bring additional features to Mastercard bank partnerships through its white-label platform Tachyon.
Tachyon enables banks to provide credit products, personal loans, buy-now-pay-later (BNPL), upsell credit, and decrease fraud by allowing them to roll out credit products, issue personal loans, and provide buy-now-pay-later (BNPL).
Zeta, founded in April 2015, provides a digital infrastructure to banks, assisting them in managing consumer payments and deposits while also helping them in integrating fintech solutions.
The relationship with Mastercard’s main goal is to promote both businesses in new geographies, leverage sales lead and provide greater value to cardholders by assisting banks in customizing their products. Their relationship with Mastercard allows them to expand into new areas and assure speedy integration while minimizing their time to market, stated Bhavin Turakhia, CEO and Co-Founder at Zeta.
Zeta’s current focus is on India, the United States, and Southeast Asia. Turakhia noted that the company plans to debut its solutions in Brazil and the United Kingdom in the first half of 2023.
Zeta has already begun working with Mastercard on innovation in the Middle East and North Africa, Europe, and the Asia Pacific as part of the relationship. In the following years, it hopes to add another 20-30 multinational banks to its platform as clients. Mastercard has been a long-time supporter of the Indian fintech scene. Fintech startups Razorpay and Pine Labs are among its portfolio companies in the country.
Zeta is a full-stack, cloud-native, API-first neo-banking platform that includes a digital core and a payment engine for credit, debit, and prepaid product issuance, allowing legacy banks and new-age fintech institutions to offer modern retail and corporate fintech products. Zeta offers its platform and solutions to BFSI issuers in India, Asia, and Latin America. Banks like RBL Bank, IDFC First Bank, Kotak Mahindra Bank, and 14000 corporates and over 2 million consumers use Zeta’s solutions.
For more information, visit https://www.zeta.tech/in