Fintech Startup Zeta Launches New Stack to Support Credit Transactions on UPI

Fintech startup Zeta has unveiled a new technology stack designed to facilitate credit line-based transactions on the Unified Payments Interface (UPI). Zeta co-founder Bhavin Turakhia envisions credit disbursals on UPI reaching a trillion dollars by 2030 and aims for Zeta to process half of these transactions.

Zeta will operate as a technology service provider (TSP) for financial institutions, offering comprehensive support for credit transactions. Turakhia explained that Zeta’s tech stack enables banks to focus solely on customer acquisition and underwriting, while Zeta manages everything from customer origination to lifecycle management, analytics, and experience management.

Turakhia emphasized the growing importance of UPI in facilitating various forms of credit transactions, including consumer loans, personal loans, and EMI loans. Zeta aims to enable and streamline these transactions on the UPI platform

Zeta has raised significant equity funding amounting to $340 million from investors such as SoftBank, Sodexo, and Mastercard, with a valuation of $1.5 billion in 2022. While not actively seeking additional funding, Turakhia expressed openness to strategic partnerships that could drive Zeta’s growth further.

According to co-founder Ramki Gadipatti, Zeta is nearing global break-even and has gained valuable experience working with lenders in the United States and other regions. In India, Zeta’s technology powers HDFC Bank’s PayZapp mobile application, showcasing Zeta’s capability and resilience during regulatory audits amid the banking regulator’s scrutiny.

Gadipatti highlighted the successful regulatory audits Zeta underwent, demonstrating the company’s commitment to compliance and its ability to navigate challenges effectively.

Zeta’s latest technological advancements underscore its ambition to be a leading enabler of credit transactions on the rapidly evolving UPI platform, aiming to transform and simplify financial services for consumers and banks alike.