The funding is in continuation of the US$240 million fundraise that Zeta secured in May 2021 from SoftBank Vision Fund 2. The funding valued company at US$1.45 billion, marking its entry into the unicorn category.
The investment made by Mastercard in Zeta is a part of a strategic 5-year partnership in which both companies will offer their credit management offerings and card-processing product stack.
Under this partnership, both Mastercard and Zeta look to issue 30-40 million debit and credit cards and process US$60 million in total payment value through their banking and payment products. Zeta through its white-label platform Tachyon will also provide additional capabilities to bank partnerships of Mastercard.
Tachyon allows banks to issue personal loans, roll out credit products, offer buy-now-pay-later, upsell credit and reduce fraud.
Zeta founded in 2015 by Bhavin Thurakia and Ramki Gadipatti is a modern banking tech company that provides technology infrastructure to financial institutions, helping them manage customer payments and deposits while helping them embed offerings from FinTech companies.
The product offerings from Zeta includes Tachyon Suite and Fusion. Tachyon suite comprises of core banking, credit and debit card processing, loans, and prepaid hosting, all integrated with a mobile app. Fusion is an embedded banking platform that enables banks to provide APIs and SDKs to FinTech, distributors, neobanks and enable them to embed credit, debit, and prepaid loan products within their apps and experiences.
At present, the company continues to focus on India, Southeast Asia, and the US. The company will look to launch its solutions in Brazil and the UK by the first half of 2023.
As a part of the partnership, Zeta has already started collaborating with Mastercard for innovation across North America and Middle East, APAC, and Europe. It is now looking to add another 20-30 global banks to its platform in the coming years.
Zeta competes with the likes of Yodda, Walrus, Junio, and Fampay by providing a feature through which users can instantaneously generate a digital card for their family members including teenagers.