Zeta targets global profitability in FY27 as overseas business scales | Company Business News
Zeta targets global profitability in FY27 as overseas business scales
Zeta, a homegrown banking-technology company that provides software infrastructure to financial institutions, is targeting full-year profitability in its global business in fiscal year 2027 (FY27), as customers it spent years onboarding and building technology for move into the scaling phase, top executives told Mint.
The company has already reported several quarters of operational profitability in its global business, while its India business has been profitable for more than three years, said Ramki Gaddipati, chief executive Asia Pacific, global chief technology officer and co-founder of Zeta, on the sidelines of the Global Fintech Fest held in Mumbai recently.
“This year will be a full year of profitability,” Gaddipati said.
The company currently has annual revenue of more than $100 million, with roughly 75-80% coming from the US and 20-25% from India. While the US is its larger revenue market, India remains strategically important because of the depth of its bank relationships, deal pipeline and growth prospects.
Also Read|Zeta turns focus back to India for credit on UPI service: CEO Turakhia
Zeta has long sales and implementation cycles, with revenue scaling only after a solution goes live and customers add users and transaction volumes. “As the fruits mature, you start getting the results,” said Sivaram Kowta, president, Zeta India.
Once a solution goes live, revenue grows as customers add users and transaction volumes. Zeta’s focus, Gaddipati said, is on large, end-to-end technology projects rather than small pilots.
Earlier last year, the banking software provider raised $50 million from US-based Optum, a subsidiary of UnitedHealth Group, at a valuation of $2 billion.
Founded in 2015, by Bhavin Turakhia and Gaddipati, Zeta onboards banks for an end-to-end technological revamp.
Bigger bank bets
In October last year, Mintreported that Zeta was also looking to expand its India business through large bank partnerships.
Its full-stack platform powers core banking systems, credit card issuance and digital banking applications. Its India journey took off with HDFC Bank, which turned to Zeta to rebuild its PayZapp app and build a second credit card issuance platform, in addition to its existing one, as part of a broader effort to strengthen its consumer-facing technology stack.
The partnership marked a milestone for Zeta, which had earlier worked with RBL Bank, Axis Bank and IDFC First Bank on more limited projects such as API integrations and authentication systems.
Also Read|Banking reform 3.0: Indian banks don’t have much time to get future-ready
Zeta’s platform can power products including credit cards, debit cards, UPI payments and digital banking services. But large new partnerships also require significant upfront investment in people and implementation.
“New customers bring in both a lot of revenue and a lot of work,” Gaddipati said.
Agentic commerce, DPDP push
Agentic commerce is emerging as another potential growth area, particularly as banks prepare for AI agents to make payments on behalf of customers.
Zeta believes the industry has so far focused largely on merchants and payment networks. The banking side will also need systems to manage consent, authentication, risk and control when customers allow AI agents to transact using their cards and accounts.
“For the future, for sure, it’s a large one,” Gaddipati said, referring to agentic commerce as a growth driver.
The Digital Personal Data Protection (DPDP) framework could provide another opportunity.
The framework could increase demand for technology that helps banks manage customer data and consent. Zeta is not positioning itself as a standalone DPDP compliance provider. Instead, it is building the requirements into its banking products.
Also Read|Centre nudges RRBs to ramp up digital banking to spur growth
Its systems can, for example, capture consent when customers share information while applying for a credit card and control how that data is stored and accessed.
“Any product that we do, it will be DPDP compliant,” the company said.
About the Author
Mansi Verma is a senior correspondent covering private capital in India for Mint. Think of strategy shifts, private equity and venture capital deals, the companies trying to go public, and occasionally, the ones falling apart.<br><br>She moved into this beat in 2022, and has been following it closely since. Prior to Mint, Mansi worked at Moneycontrol, where she covered jobs and edtech, reporting extensively on the 2022–2024 startup and IT layoffs cycle. Her work during this period focused on what happens to fast-growing companies when capital dries up, combining financial reporting with human-interest stories.<br><br>Mansi reported closely on Byju’s during a critical phase in its unravelling, and has since built a strong understanding of edtech businesses, particularly unicorns, and the deeper structural challenges in education that many of them have struggled to solve. At Mint, she follows the flow of capital across VC and PE deals, exits and IPO pipelines, while also tracking large investment firms, and the financial services sector.<br><br>Outside of the newsroom, Mansi spends time exploring how technology is changing the way people think and work, while actively attempting to build a critical thinking human brain in the age of short-form everything.<br><br>She holds a Master’s degree in journalism and has moderated industry discussions on financial services and investments.
NewsFinancialsBankingBanking SectorBanks
Get Latest real-time updates
Catch all the Business News, Corporate news, Breaking NewsEvents and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
HomeCompaniesNewsZeta targets global profitability in FY27 as overseas business scales
More
