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Synctera has raised $24.5 million in a funding round joined by five investors, bringing its reported total funding to $126.7 million. The Banking-as-a-Service company says it is focused on helping businesses and bank partners build financial products, with compliance a recent area of investment.
Synctera has raised $24.5 million in a new funding round, bringing the embedded finance and Banking-as-a-Service company’s reported total funding to $126.7 million. Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram and NAventures joined the round, according to Finextra.
Synctera provides a platform and works with bank partners to help companies build and launch fintech applications and embedded banking products. The company launched in 2020. The report does not disclose the round’s valuation, the terms of the investment, or how the new capital will be allocated.
The funding brings together five investors: Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram and NAventures. Finextra reports that the round takes Synctera’s total funding to $126.7 million. It does not provide a breakdown of the company’s previous funding or say whether all of the total was raised through equity investment.
Synctera was founded by Peter Hazlehurst, its chief executive, along with chief technology officer Kris Hansen and head of product Dominik Weisserth. The report describes Hazlehurst as a former head of Uber Money and Google Wallet and former chief product officer at Yodlee.
Funding Supports Synctera’s Bank-Focused Model
The new funding gives Synctera additional capital as it serves businesses seeking to add financial features to their products and banks that partner with fintech firms. Its model connects companies building fintech apps with bank partners and platform services, rather than requiring each company to build every component itself. The source does not specify whether the money is earmarked for product development, hiring, acquisitions or other uses.
The announcement also comes as the company has placed more emphasis on compliance. Finextra reports that Synctera acquired Cable earlier this year. Cable’s software tests controls across banks, fintech companies and service providers, with the stated aim of checking whether those controls work in practice. The acquisition links Synctera’s platform business with tools intended to help its customers and partners monitor compliance processes.
That matters because banks remain accountable for activity conducted through fintech programmes, according to Hazlehurst. The company’s ability to maintain bank relationships and support oversight may affect how it competes for customers and partnerships. The funding announcement, however, does not establish that Synctera has secured new bank partners or that its compliance products have produced particular results.
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Synctera’s Platform and Compliance Push
Synctera launched in 2020 to help companies create fintech apps and embedded banking products with support from bank partners. Banking-as-a-Service arrangements can allow a non-bank business to offer financial products through a bank relationship and technology services. The report identifies Synctera as a participant in that market but provides no detailed description of its current products, customer numbers or partner banks.
The company’s more recent compliance focus includes its acquisition of Cable, which the report says tests controls continuously across banks, fintechs and service providers. No acquisition price, completion date or details about how Cable’s tools will be integrated into Synctera’s platform are provided.
Hazlehurst described a change in the questions he hears from banks about Banking-as-a-Service. “Two years ago, banks asked me whether to be in this business at all,” he said. “Now they ask how to do it well.” He added that banks answer for what happens in fintech programmes and said Synctera’s role is to make participation easier. These comments are the chief executive’s account of bank sentiment, not independently measured evidence of a wider market shift.
““Two years ago, banks asked me whether to be in this business at all. Now they ask how to do it well.””
— Peter Hazlehurst, Synctera chief executive, as quoted by Finextra
Round Terms and Spending Remain Undisclosed
The report does not specify when the funding round closed, its valuation, its structure or the amount contributed by each investor. It also gives no detail about how Synctera plans to spend the proceeds, whether the round involved new or existing investors beyond those named, or whether it includes other financing instruments.
Several measures that would show the company’s operating position are absent: the report provides no revenue, customer or bank-partner figures, and no information on staffing or geographic reach. The business impact of Cable’s acquisition is also not quantified. No compliance outcomes, new product launches or customer wins are tied to the funding in the available report.
Hazlehurst’s comments about banks reconsidering Banking-as-a-Service reflect the chief executive’s view. The source does not include responses from banks, industry-wide data or other evidence confirming the extent of that change. The round itself confirms investor participation, but it does not by itself show how Synctera’s growth or business performance may develop.
Watch for Spending and Partner Updates
Synctera has not announced a spending plan, product timetable or new partnerships in the report. The next developments to watch for are any company disclosures about how it will use the $24.5 million, whether the funding will support further work on compliance, and how Cable’s control-testing tools will be incorporated into its services.
Further information about the round could clarify its terms, investor contributions and valuation. Updates on bank relationships, customer adoption or product launches would also offer a clearer picture of how Synctera intends to use the capital. Until the company provides those details, the confirmed development is the funding itself and the reported increase in total funding to $126.7 million.
Key Questions
How much did Synctera raise?
Synctera raised $24.5 million in the round reported by Finextra.
Who invested in the round?
The investors named in the report are Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram and NAventures.
How much funding has Synctera raised in total?
Finextra reports that the round brings Synctera’s total funding to $126.7 million. The article does not provide a breakdown of earlier rounds.
What does Synctera do?
Synctera’s platform and bank partners help companies build and launch fintech apps and embedded banking products. The company launched in 2020.
What is known about how Synctera will use the money?
The source does not disclose how the company plans to spend the $24.5 million. It also does not provide the round’s valuation or investment terms.
Source: finextra.com
