Core Insights - Zeta, a software startup led by Bhavin Turakhia, is expanding its banking partnerships to digitize services after a successful pilot with HDFC Bank in India [1][2] - The company is valued at $2 billion and aims to onboard two large banks by mid-2026, currently engaging with around 39 to 40 top banks in India [2] - Zeta has been profitable in India for three years and expects to achieve global profitability by FY26, targeting $100 million in annual recurring revenue (ARR) [3] Company Strategy - Zeta focuses on end-to-end technological revamps for banks, emphasizing the importance of scale and new customer acquisition [4] - The company has a team of 1,600 members and typically hires between 100 to 400 people for each new partnership [4] - Earlier this year, Zeta raised $50 million from Optum, a subsidiary of UnitedHealth Group, to bolster its cash reserves for operational resilience [4] Technology and Partnerships - Zeta's full-stack platform supports core banking systems, credit card issuance, and digital banking applications, with a significant partnership with HDFC Bank [5][6] - The collaboration with HDFC Bank involved rebuilding the PayZapp app and creating a second credit card issuance platform, marking a significant milestone for Zeta [6] - Zeta had previously worked with banks like RBL Bank, Axis Bank, and IDFC First Bank on limited projects, but is now focusing on larger partnerships [6] Market Expansion - The company had ambitions to enter 30 markets after raising $250 million from SoftBank Vision Fund 2 in 2021 at a valuation of $1.45 billion [7] - Since its founding in 2015, Zeta has invested nearly $400 million in product and technology development [7]

Core Insights - India1 Payments is transitioning leadership and pivoting towards digital services by launching a banking technology arm to counter sluggish ATM growth in India [1][12] - K. Srinivas, the long-time CEO, is stepping back from daily operations but will remain as executive vice-chairman to guide strategy [2][15] - The company operates over 15,000 ATMs, holding a 40% market share among white-label operators and 53% in transactions [4][5] Company Overview - India1 Payments is the largest white-label ATM operator in India, with a significant presence in semi-urban and rural areas [5][10] - The company was established through a partnership with ICICI Venture and has grown significantly since the Reserve Bank of India opened the white-label ATM space in 2013 [6][7] - In FY25, India1 reported revenues of ₹670 crore and profits of ₹35 crore, benefiting from recent policy changes regarding interchange fees [7][8] Market Dynamics - India has approximately 250,000 ATMs, with around 36,000 being white-label machines [5] - The company faces challenges as banks are reducing ATM deployments due to a shift towards digital payments, despite high cash circulation [11] - India1 aims to expand its ATM network to 20,000–25,000 ATMs in the next five years [9] New Initiatives - India1 is launching a fintech arm named Paysis, targeting smaller banks that lack the infrastructure for transaction processing [12][13] - Paysis is already servicing rural co-operative and small finance banks, managing switching and transaction services [14] - The company plans to sign up 200 co-operative banks in the next two years, capitalizing on the vast market of over 90,000 rural banks and co-operative credit institutions [15]