Banking platform Zeta raises $250mn from SoftBank at $1.45bn

Banking software platform Zeta said that it has raised $250 million led by Japan's SoftBank, valuing it at $1.45 billion and making it India's 14th unicorn of 2021 so far- firms valued at over a billion dollars- in a record breaking year.

Zeta, founded by serial entrepreneur Bhavin Turakhia and Ramki Gaddipati was last valued at $300 million when it raised $60 million from Sodexo- also Zeta's largest customer currently.

Zeta has so far earned a revenue of about $10 million, said a person familiar with the matter, making its valuation about 145 times its revenue. However Turakhia said the company has signed contracts which will earn it a revenue of over $200 million. Zeta said customers include Sodexo, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank and RBL Bank.

The deal also continues SoftBank's deal making spree in India after a relatively quiet 2019 and first half of 2020. In 2021 it is expected to deploy over $1.5 billion across half a dozen companies.