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Synctera is latest banking-as-a-service startup to cut staff

Banking as a Service Startups (BaaS) sintra The company confirmed to TechCrunch that it had undergone a restructuring that resulted in a reduction in headcount.

While Synctera did not disclose how many employees were affected, a report Fintech Business Weekly The number of people is expected to be about 17, accounting for about 15% of the company. Doing the math, that means the company had about 113 employees before the layoffs and now has about 96.

Synctera has built a platform designed to bring together fintech companies and sponsoring recently announced $18.6 million in deferred financing to it US$15 million in Series A financing, announced in March 2023.At that time, it was also announced Hire Leigh Gross As the new chief revenue officer, BTG Pactual and Flutterwave are clients.

Investors include NAventures, the corporate venture arm of National Bank of Canada; Lightspeed Venture Partners; Finn Capital; Public Bank; and Mana Ventures.

When asked about the layoffs, a company spokesperson wrote via email: “Synctera has restructured the company, resulting in a reduction in employees, and we are committed to helping those impacted. We are committed to our current business lines while providing SaaS products to banks and corporations.”

The startup isn’t the only VC-backed BaaS company to preserve cash through layoffs recently.A year after the announcement, Treasury Prime laid off half of its 100-person workforce in February Series C financing of US$40 million. Last October, Andreessen Horowitz-backed Synapse confirm that it has 86 layoffs, accounting for about 40% of the company. Last July, Figure Technologies (including Figure Pay) laid off 90 employees, accounting for about 20% of its total workforce.

at the same time, According to reports, Pyrmont Bank sever ties According to FinTech Business, work with startups.

BaaS refers to various types of business models, such as providing bank-like services to other players in the industry; or providing charter flights and banking services but not underwriting; or providing banking components, which is more like a fintech, It is not a bank but provides some bank-like services without a license.

BaaS players face challenges, especially a regulatory crackdown in 2023. For example, S&P Global Market Intelligence reports that players providing BaaS to fintech partners accounted for more than 13% of the severe enforcement actions taken by federal bank regulators last year. Unfortunately, startups dealing with these challenges may need to take more layoffs to keep up.

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