Zeta inching closer to unicorn status with SoftBank-led funding

Bangalore-based startup Zeta is inching closer to the much sought-after unicorn status as it works to finalize a new financing round led by SoftBank Vision Fund 2, sources familiar with the matter told TechCrunch.

SoftBank Vision Fund 2 is in talks to lead a ~$250 million Series D round in the five-year-old Indian startup, the sources said. The new round would value the Indian startup, co-founded by high-profile entrepreneur Bhavin Turakhia, at about $1.3 billion, up from $300 million in its maiden external funding (Series C) in 2019. (The round hasn't closed, a third person said.)

A SoftBank spokesperson declined to comment. Turakhia didn't respond to a request for comment.

Five-year-old Zeta helps banks launch modern retail and fintech products. The thesis is that banks - largely operating on antiquated technologies - today don't have the time and expertise to offer the best experience to hundreds of millions of customers and fintech firms they serve.

Zeta is attempting to help banks either use the startup's cloud-native, API-first banking stack as its core framework or build services atop it to offer better a experience to all customers - think of improved mobile app and debit and credit features. It also offers API, SDKs and payment gateways to banks to work more efficiently with fintech firms.

The startup has amassed clients in several Asian and Latin American markets.

Turakhia, with his brother Divyank, started his first venture in 1998. Along the way, they sold four web companies to Endurance for $160 million. Zeta is the third startup Bhavin has co-founded since then - the other being business messaging platform Flock and

Zeta is the seventh Indian startup to become a unicorn this month. Last week, social commerce Meesho - also backed by SoftBank Vision Fund 2 - fintech firm CRED, e-pharmacy firm PharmEasy, millennials-focused Groww, business messaging platform Gupshup and social network ShareChat attained the unicorn status.