Zeta, a Bengaluru based Fintech / banking tech start-up is the talk of Unicorn town because it will make a grand entry into the start-up unicorn club of India with a valuation of above $1B. Zeta will join recent unicorn start-ups after closing an ongoing Series D funding round of $250 M backed by SoftBank Vision Fund 2.
Zeta’s technology offering is helping banks by providing them a cloud-native API-first banking stack at the core framework. Banks also have the opportunity to build atop this framework. The technology will empower banks to improve their customer experience through a better mobile app, debit, and credit features. Zeta is also providing API, SDKs, and payment gateways to banks.
How Zeta checked all the right boxes
Since its conception 5 years ago, Zeta has been checking all the right boxes to get to the highly coveted unicorn status. Earlier in 2019, it had garnered a funding of $300M in a Series C round. So, what did Zeta do right along the way to get to where it is now? Let’s find out!
The first thing Zeta did right was to venture into the fintech or banking tech sector.
Enterprise Tech – Hot sector for the Unicorn club
To get a one-way ticket into the Unicorn club, Fintech and Enterprise tech are currently hot sectors to venture into. The first thing Zeta did right was to build products and services for the fintech or banking tech sector.
The Indian neo-banking market is rapidly expanding with the arrival of several Indian start-ups alongside Zeta which are seen as strong contenders. If their funding is successful, Zeta will be the third fintech start-up and a modern banking tech company to become a unicorn.
Zeta is a full-stack neo-banking platform that’s enabling banks and financial institutions by helping them for security purposes like Authentication, Fraud and Risk Management, a strategy that has worked very well for Zeta.
Their solutions are currently very popular among Asian issuers, banks and corporate firms.
Another strategy which has worked in their favour is the fact that they pivoted from corporate finance management solutions like tax saving reimbursements, employee rewards and recognitions including corporate cafeteria solutions. Their changed stance is now to provide fintech solutions for banks and bank centric solutions.
What’s in it for me?
The neo-banking sector is seeing a lot of investments and fundings. Start-ups venturing into this sector have a good chance of following Zeta into the Unicorn world.
Also, the B2B market in banking tech is lucrative for start-ups at the moment. Online banking solutions for businesses is a good idea which is sure to attract funding.
As we are well aware, the availability of instant payment products is popular among Indian users. There is high demand for quick cash apps, virtual payment products, loans and financial products like post-paid services. Start-ups creating a portfolio of similar products will attract investments and funding.
There is immense popularity, awareness and demand in the digital payments space. There is also a lot of competition in the market.