Zeta bets on modern code to rewrite $300 bn banking software market

Zeta, a banking-tech firm co-founded by serial entrepreneurs Bhavin Turakhia and Ramki Gaddipati, is aiming to capture a major share of the $300 billion global banking technology market in the next few years. The company’s flagship product, Omni Stack, offers a cloud-native, API-driven alternative to the legacy infrastructure still used by many banks. With most financial institutions operating on decades-old systems, Zeta sees a long-term opportunity to overhaul the digital backbone of global banking. 

“Our goal is to capture between 25 to 50 per cent of that. It’ll take 10–15 years to make a meaningful mark,” Turakhia said.

Turakhia and Gaddipati, who founded Zeta in 2015, have assembled a top-tier team of data scientists, engineers, architects, and product managers focused on solving complex banking challenges. 

The aim is to tackle a long-standing issue: core banking systems remain outdated, built on decades-old mainframes and COBOL code. This stagnation has hindered innovation and limited financial access for millions. Zeta aims to change that with Omnistack — a modern, cloud-native platform offering full API coverage for processing, lending, apps, fraud detection, and rewards. 

Zeta’s clientele already includes industry leaders such as HDFC Bank, Sparrow Financial — a US-based  subprime credit card issuer, and Pluxee (formerly Sodexo). 

While Zeta did not disclose its global revenue, the company’s Indian entity recorded a 9.42 per cent increase in revenue from operations to Rs 893.12 crore in FY24, according to Entrackr. Its profit after tax (PAT) jumped 5.4 times to Rs 119.82 crore in that period.

 

IPO ambitions

 

The company has now set a three-year horizon to meet critical internal milestones before  going for an IPO (initial public offering). This includes achieving full profitability by March 2026. There is also focus on scaling enterprise adoption in the US and Indian markets. Zeta has already signed several major institutions, including HDFC Bank in India and UnitedHealth Group and CardWorks in the US. The third area of focus is execution. This includes ensuring that existing enterprise clients are fully live and running their core technologies on the Zeta platform. 

“Zeta will certainly have a path to IPO at some point,” Turakhia said. The startup became a unicorn in 2021 with a $1.5 billion valuation, backed by SoftBank, Mastercard, and Pluxee. By 2025, its valuation rose to $2 billion after a $50 million round from a strategic investor. 

However, in the capital-intensive banking-tech sector, Zeta stands out for more than just innovation. Over 70 per cent of the company remains founder-owned, even after raising $380 million and reaching a $2 billion valuation. This rare achievement reflects deliberate choices by the founders. 

Turakhia credits Zeta’s rare equity structure to early self-funding, which helped minimise dilution. The company also focused on revenue and profitability from the start. A disciplined financial model with mini-business units also drives accountability. 

Turakhia explained that early investors often demand more equity due to higher risk. Zeta avoided this by bootstrapping early on, preserving equity and gaining strategic freedom. 

From day one, Zeta emphasised building a revenue-generating business rather than chasing growth at any cost. “We’ve focused on profitability and revenue from the start, even while building the platform,” said Turakhia.

 

Zeta’s product development has also been closely tied to client collaboration. It began with HDFC in India as the first customer. The company then expanded to US clients, continuing to refine its platform with early adopters.

 

Behaving like a listed firm

 

A key aspect of Zeta’s model is its internal structure. The company operates through independent cost and profit centres. Each unit has its own budget, accountability, and reporting cadence. Leaders of each unit operate with a high level of autonomy but are held to rigorous performance standards. All budgets and forecasts are published across the company and are reviewed monthly. 

According to Gadipatti, one of Zeta’s biggest cost drivers is its people. Managing that well is key to long-term sustainability. Another core part of Zeta’s discipline is its willingness to reassess and stop efforts that don’t deliver results. 

When asked whether Zeta’s public company-style financial discipline was a preparation for an eventual IPO, Turakhia said the structured approach was shaped by years of building companies like Radix, Titan, and Zeta. 

However, Turakhia acknowledged that this level of discipline might ease a future public listing. “It’s crucial, especially as a private company, to spend efficiently, avoid waste, and stay transparent,” said Turakhia

 

AI in banking

 

Over the last decade, Turakhia and Gadipatti have invested about $400 million to build one of the world’s most advanced banking platforms. Zeta’s cloud-based software is designed for flexibility and speed, using modern tech principles like microservices and APIs. Its tools — like Tachyon for core banking, Saturn for card operations, and Luminos for customer engagement — cover the full banking product lifecycle. This allows banks and fintechs to quickly launch products like credit and debit cards, savings accounts, loans, BNPL, and UPI-based services with ease. 

“A significant portion of our R&D — about 30–40 per cent — has gone into building a secure, portable cloud infrastructure,” Gadipatti said. “It’s designed to be cloud-agnostic, allowing banks to leverage the best offerings from any major cloud provider.”

Zeta is also focusing on the growing role of artificial intelligence (AI), particularly generative AI, in financial services. While its impact on core banking infrastructure is still emerging, Gaddipati believes the real value lies in enhancing customer-facing journeys and operational efficiency. “Over the next few years, we’ll be investing heavily in these areas,” he said. 

Turakhia said AI will be key for both Zeta and its banking clients. Internally, teams across engineering, product, design, and marketing use GenAI to boost productivity and streamline work. On the client side, Zeta uses machine learning to help banks make smarter decisions. This drives efficiency and revenue across areas like fraud detection, underwriting and credit risk.

Turakhia said Zeta is enabling bank staff, like contact centre agents and operations teams, to use GenAI tools for faster, more accurate customer service. 

“AI is a foundational platform and ecosystem enabler,” he said. “It permeates every layer of the solutions we build and deliver to banks.”