Banking Platform Synctera Raises $33 Million
The partnership banking platform Synctera announced a $33 million Series A funding round on Wednesday (June 2), bringing the startup’s total funding to $45.4 million since its launch in late 2020.
As PYMNTS reported last year, Synctera is a platform that facilitates FinTech scale and encourages banks to leverage their current capabilities in new ways. But it’s also often referred to as a “matchmaker,” pairing community banks with FinTechs that want to provide banking services for customers but are concerned that doing so might mean working with third parties that can’t offer the compliance they need.
“We’re working with community banks that previously either hadn’t been able to participate in the FinTech revolution or are doing it, but aren’t doing it as efficiently as they would like,” Co-founder and CEO Peter Hazlehurst told PYMNTS last year. “We’re helping them build all of the things they would need to run effective FinTech programs.”
In addition to the Series A round, Synctera also announced that it is joining other startups in committing to the Cap Table Coalition, allocating 10 percent of all funding rounds to “traditionally marginalized investors.” Hazlehurst said in a news release that this move will allow for “more representation and collaboration to further innovate the industry.”
Synctera noted that demand for its services has ballooned along with the embedded finance and Banking-as-a-Service FinTech sectors over the last year.
The funding round was led by Fin VC, with new funding from Mastercard and Gaingels, as well as investments from Lightspeed Venture Partners, Diagram Ventures, SciFi Ventures and Scribble Ventures. This new funding will help the company expand its software engineering team, boost sales and marketing, and prepare for international expansion. Synctera hopes to add more than 150 people to its team by the end of 2021.