Sodexo invests in Zeta at $300 mn valuation in maiden round

Sodexo invests in Zeta at $300 mn valuation in maiden round
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24 Jul, 2019

FIntech firm Zeta, which offers enterprise payments solutions and neobanking services, has raised Series C investment from Sodexo Benefits and Rewards (BRS) in its first external round of funding. 

The investment values Zeta at $300 million (Rs 2,072 crore at the current exchange rate).

The company will utilise the funds for global expansion of its cloud banking platform and digital payments solutions to 15 new countries over the next two years, an official statement said.

The funding will also be used to enhance its capabilities in machine learning, artificial intelligence, and predictive analytics to offer better services to users, the statement added.

Zeta offers cloud-native neobanking platform for issuance of credit, debit and prepaid products, apart from enterprise solutions for corporates such as automated cafeteria and employee gifting.

“Today’s banking and fintech ecosystem requires cloud-native, privacy-aware, inherently secure, API-first banking and payment solutions," Bhavin Turakhia, CEO of Zeta, said in the statement.  "With this new investment, we want to further our vision to accelerate to a world where payments are invisible and seamless."

The company was co-founded by Turakhia and Ramki Gaddipati in 2015. 

Zeta was internally funded through diversified tech company Directi, founded by brothers Bhavin and Divyank Turakhia, which runs multiple lines of businesses including calling app Ringo, enterprise communication app Flock, internet domain registration name platform Radix, and Zeta which started out as a digital meal benefit product for employees. 

Turakhias made $160 million selling their web presence business to Nasdaq-listed Endurance Group in 2013, and $900 million selling their adtech business Media.Net to a consortium of Chinese buyers in 2016.

Zeta works with multiple industry players including Sodexo, RBL Bank, IDFC First Bank and Kotak Mahindra Bank. 

“Sodexo has been a strategic partner of Zeta since 2017,” Aurelien Sonet, CEO of Sodexo BSR, said in the statement. 

He added that the investment will enable the Sodexo group to benefit from Zeta’s payment product and add to its suite of offerings. 

France-headquartered Sodexo has a presence across 72 countries and offers food services and facilities management.