Synctera Secures $15M Funding and Partners with Bolt: A Game-Changer in BaaS Innovation
The banking-as-a-service (BaaS) sector faced significant challenges last year, particularly after the collapse of Synapse. However, the resilient startup Synctera has successfully secured an additional $15 million in funding, as reported exclusively by TechCrunch. This infusion of capital underscores the company’s commitment to providing essential services for fintech and embedded banking solutions.
Funding Success for Synctera
Synctera aims to equip businesses of all sizes with the necessary tools to launch and manage their own fintech and embedded banking products. According to CEO and co-founder Peter Hazlehurst, the company offers a comprehensive suite that includes accounts, cards, and payment products.
Investment Round Details
In this latest Series A extension round, Fin Capital and Diagram co-led the investment, bringing Synctera’s total equity raised since its inception in 2020 to an impressive $94 million. Other notable investors include:
- Lightspeed Venture Partners
- NAventures
- Banco Popular
- Mana Ventures
- Evolution
- True Equity
- 1st and Main
While Hazlehurst did not disclose the company’s valuation, he expressed optimism that this new capital would help Synctera reach breakeven by early 2026.
Impressive Growth Metrics
According to Hazlehurst, Synctera has experienced remarkable financial growth, reporting an 80% increase in revenue and a 230% surge in gross profit year-over-year for the fiscal year ending January 31. The company currently serves 31 clients, including:
- Bolt
- Webull
- Fruitful
- Unified Signal
- Firstcard
Synctera’s platform now boasts 416,000 end users, more than triple the number from the previous year.
Compliance as a Competitive Advantage
Hazlehurst attributes Synctera’s competitive edge to its robust compliance tools. He stated, “While our competitors provide the necessary API layer for launching fintech products, our unique offering includes comprehensive tools and infrastructure to help customers and banks manage compliance and ongoing operations.”
Current Operations and Revenue Model
With a team of approximately 90 employees, Synctera has managed to nearly double its business without increasing its workforce. The company generates revenue through various channels, including:
- Monthly platform fees
- Usage-based fees for ledgers and accounts
- Transaction fees
- Fraud monitoring and KYC/KYB services
- Revenue sharing on interchange
- Interest on deposits
Impact of Synapse Collapse
Reflecting on the Synapse collapse, Hazlehurst noted that it had mixed effects on the industry. He stated, “While we faced challenges, we also saw an influx of fintech companies seeking new banking relationships and solutions.”
He emphasized the importance of prioritizing consumer and bank needs, contrasting Synctera’s approach with the failures observed in other organizations.
Future Plans and Strategic Partnerships
Looking ahead, Synctera plans to utilize the new funding to expand its sales team and enhance product development. The startup is also eyeing growth opportunities in Latin America, where demand is strong and they have secured several large customers.
Recently, Synctera formed a strategic partnership with Hawk, a company dedicated to combating financial crimes such as money laundering through the use of artificial intelligence.
For more insights into the evolving BaaS landscape, visit TechCrunch and explore related articles on Finextra.
