The product is based on the NPCI’s credit line on UPI program, which uses the network to accelerate credit issuing in India. Zeta estimates transaction volumes on this system to hit $1 trillion by 2030. Zeta, founded by Bhavin Turakhia and Ramiki Gaddipati, provides an omni stack platform enabling financial institutions to process and issue debit and credit cards, make loans, and manage fraud and risk.
Zeta, a fintech unicorn, has launched a bank-focused digital credit-as-a-service solution. The product is based on the NPCI’s credit line on UPI scheme, which leverages the network to accelerate credit issuing in India.
The company forecasts transaction volumes on this scheme to approach $1 trillion by 2030 and hopes to capture 50% of this market opportunity with their solution, which assists banks in creating and launching credit products swiftly.
Ramki Gaddipati, CEO APAC & Global CTO, Zeta, stated, “By delivering credit at the point of need, Credit Line on UPI has hit a home run for banks, completely changing the discovery, access, and cost mechanics of retail lending.”
Gaddipati stated that the pricing for Zeta’s new product would vary based on the exact services sought by each bank.
He continued, “We saw UPI volumes putting a strain on core banking systems.” We predict similar quantities on Credit Line on UPI soon, necessitating population-scale banking infrastructure capable of processing hundreds of millions of credit accounts.”
Zeta, founded in 2015 by Gaddipati and Bhavin Turakhia, provides an omni-stack platform enabling financial institutions to process and issue debit and credit cards, make loans, and manage fraud and risk.
Its digital credit-as-a-service offering consists of a full services and technology stack driven by Zeta’s cloud-native and next-generation core banking and payments platform, which enables institutions to manage digital credit processes from origination to collection.
The package will also feature pre-integrated systems to speed up launch processes, bundled services to improve operational efficiency, and a wide range of product blueprints, including EMI loans, merchant loans, and agricultural loans. It will also include features for operations, compliance, and regulatory reporting, as well as process advice to help connect Credit Line on UPI with existing bank systems.
Meanwhile, the company declared a profit after tax (PAT) of INR 21.94 crore for the fiscal year 2022-23 (FY23), compared to a loss of INR 20.7 crore in FY22.
The Bengaluru-based fintech unicorn’s income from operations increased by nearly 33% to INR 816.20 crore in FY23, up from INR 615.05 crore the previous year.
Zeta reached the unicorn club in May 2021, after a $250 million investment round led by Masayoshi Son’s SoftBank, bringing their total capital raised to $340 million. Its investors include Softbank Vision Fund, Sodexo, and Mastercard.
