Zeta bets on Indian banks to scale its $2-billion ‘banktech’ model
Banking tech company Zeta’s India journey took off with HDFC Bank last year as the private lender strengthened its partnership with the software provider after RBI lifted a 15-month embargo on the lender's digital launches
Bhavin Turakhia-led software startup Zeta is onboarding newer banking partners to digitise their services after piloting its end-to-end banktech model with HDFC Bank Ltd in India last year.
The company, valued at $2 billion, expects to onboard two large banks by mid-2026, Turakhia told Mint in an interview, along with co-founder Ramki Gaddipati, on the sidelines of the Global Fintech Fest on Thursday. “Our team is in active conversations with around 39 to 40 of the top banks in India. That’s where we’re spending about 90% of our effort. We expect to sign a couple of new deals early to mid next year."
The conversations mainly span product areas such as credit cards, credit lines on UPI, debit cards, UPI switch, and UPI payments, along with building unique digital experiences for these banks, said Turakhia.
Zeta, which has been profitable in India for three years, expects to turn profitable globally in FY26, touching $100 million in annual recurring revenue (ARR), said Gaddipati, also the company’s APAC CEO.
Zeta is focused on boarding bank partnerships for the end-to-end technological revamp. “For us, scale is always a step up. New customers bring in both a lot of revenue and a lot of work," said Gaddipati. “We’re currently a 1,600-member team, and we typically hire anywhere between 100 to 400 people to support each new partnership."
Earlier this year, the banking software provider raised $50 million from US-based Optum, a subsidiary of UnitedHealth Group, at a valuation of $2 billion. The proceeds will largely go into the company’s cash reserves, intended for operational resilience and unforeseen expenses, Mint earlier reported.
Technology edge
Zeta’s full-stack platform powers core banking systems, credit card issuance, and digital banking applications. Its India journey took off with HDFC Bank, which strengthened its partnership with Zeta last year under its Digital 2.0 revamp after the Reserve Bank of India (RBI) lifted a 15-month embargo on the bank’s digital launches.
HDFC turned to Zeta to rebuild its PayZapp app and build a second credit card issuance platform, in addition to its existing one, as part of a broader effort to strengthen its consumer-facing technology stack. The partnership marked a milestone for Zeta, which had earlier worked with RBL Bank, Axis Bank, and IDFC First Bank on more limited projects such as API integrations and authentication systems.
After several years of aggressive international expansion, it was shifting focus back to India for its next phase of growth, Zeta told Mint in an interview in August last year.
The company had targeted entering 30 markets after raising $250 million from SoftBank Vision Fund 2 in 2021 at a $1.45 billion valuation. Founded in 2015, Zeta has invested nearly $400 million in product and technology development to date.
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