Zeta, a banking technology provider, has achieved unicorn status by raising $250m from SoftBank Vision Fund 2.

The Series C investment increases its valuation to $1.45bn. Existing investor Sodexo also participated in the round as an additional minority investor.

Zeta plans to use the new proceeds to fuel its growth in the US and Europe. It will also focus to strengthen its platform as well as scale up operations and workforce to meet growing demand.

Founded in 2015, Zeta provides an omni stack that can be used by the banks to launch new products.

The stack includes Zeta Tachyon Credit, Debit and Prepaid processing capabilities, a BNPL and personal loan management platform and Zeta Tachyon Deposits.

It also offers Zeta Tachyon Mobile- a customisable mobile app for credit cards, checking accounts, loans and personal finance management.

Currently, Zeta counts more than ten banks and 25 fintechs among its customers.

Zeta CEO Bhavin Turakhia said: “Most banks are using decades old software built at a time when Mainframes and Cobol were in vogue. They have been slow to innovate and provide poor user experiences.

“With Zeta, FIs can leverage a modern, cloud native platform and improve speed to market, agility, cost to income ratio and user experience.

“We are privileged to have SoftBank join us in this exciting journey as we together disrupt the stagnant landscape of banking tech.”

SoftBank Investment Advisers managing partner Munish Varma said: “Banking software is a $300bn industry globally.

“Most banks still employ technology which is significantly older than their customers, impacting user experience and engagement. Zeta’s modern Omni Stack will drive banking software upgrades catering to the digital consumer, and innovations in financial services globally.”