Zeta turns profitable in FY23, plans North American expansion
2023.11.10 00:48
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Zeta, the fintech SaaS unicorn, has declared a profitable FY23 through its Indian unit, Better World Technology Pvt Ltd. The company reported a Profit After Tax (PAT) of ₹21.94 crore ($2.93 million), a stark contrast from its FY22 loss of ₹20.7 crore ($2.76 million). The announcement came on Thursday.
The Bengaluru-based firm, known for offering an omni stack platform to financial institutions, recorded approximately a 33% growth in operational revenue in FY23, rising to ₹816.20 crore ($108.6 million) from ₹615.05 crore ($81.8 million) in FY22. Along with other income, the total income climbed to ₹817.79 crore ($108.8 million) in FY23, marking an increase of about 32.73%.
Zeta’s expenses in FY23 rose by almost 25% to ₹795.85 crore ($105.8 million), largely due to an increase in employee costs and staff welfare expenses. Despite this increased expenditure, the company was able to improve its EBITDA margin to 2.68%.
The company’s cash reserves, however, dwindled by nearly 55% to ₹25.89 crore ($3.45 million) in FY23. Nevertheless, Zeta’s partnership with Sodexo (EPA:) has been instrumental in its growth trajectory.
Founded in 2015 by Bhavin Turakhia and Ramiki Gaddipati, Zeta became a unicorn in May 2021 following a $250 million funding round led by SoftBank (TYO:). To date, it has raised a total of $340 million from backers including Softbank (OTC:) Vision Fund and Mastercard (NYSE:).
Zeta provides a comprehensive platform for financial institutions and digitized solutions for enterprises. It developed an ACS for ecommerce players, with banks like RBL Bank, IDFC First Bank (NASDAQ:), and Kotak Mahindra Bank among its clients.
With its services already available in countries like Brazil, Spain, the Philippines, and Vietnam, Zeta is planning to expand into North America. The company recognizes North America as a significant global revenue opportunity, accounting for 30%-35% of the sector’s revenue.
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