US-headquartered banking software provider Zeta hiked its valuation to $1.45bn yesterday with a $250m investment by internet and technology conglomerate SoftBank’s Vision Fund 2.
Vision Fund 2 was joined in the round by food services and facility management provider Sodexo, though Zeta did not reveal how much the latter invested.
Zeta produces software which incorporates credit and debit processing and buy-now, pay-later capabilities as well as core banking processes. It is allocating the capital to recruitment, platform development and the growth of its operations.
The deal came two months after Zeta closed a $222.5m term loan A and revolving credit facility from BofA Securities, Barclays, Credit Suisse and Morgan Stanley Senior Funding.
The company had already raised $115m in equity funding and $25m in debt financing through a 2017 series F round featuring GPI Capital and funds sponsored by Franklin Square Capital Partners and sub-advised by GSO Capital Partners – both subsidiaries of Blackstone – at a $1.3bn valuation.
GSO Capital Partners and Franklin Square had previously provided $125m for Zeta in 2015 in the form of funding and debt refinancing, the year before it secured $45m in debt financing. It had previously received $2.6m in funding in 2011, according to a securities filing.
Munish Varma, managing partner at SoftBank Investment Advisers, the SoftBank subsidiary which manages its Vision Funds, said: “Banking software is a $300bn industry globally.
“Most banks still employ technology which is significantly older than their customers, impacting user experience and engagement. Zeta’s modern Omni Stack will drive banking software upgrades catering to the digital consumer, and innovations in financial services globally.”
