When the synapse collapsed last year, space as a bank was a hit. But that tells TechCrunch only because Baas startup Synctera hasn’t stopped raising another $15 million in funding.
Synctera works by “giving everything of all shapes and sizes that you need to launch and operate Fintech and built-in banking products.”
Fin Capital and Diagram jointly presents a Series A expansion round that brings total Synctera capital raised since its launch in 2020 to $94 million. Other existing investors include Lightspeed Venture Partners, Naventures, Banco Popular, Mana Ventures, Evolution, True Equity, and 1st and Main.
Hazlehurst refused to disclose the company’s valuation. As for the fundamentals of the business, he said he had expected by early 2026 that the latest capital injection would be a ‘break-even’ point.
According to Hazlehurst, the company saw an 80% increase in revenue for the fiscal year ending January 31, up 230% year-on-year. 31 customers include one-click checkout company Volt, Weble, Fruitful, Unified Signal, First Card and more. Synctera said that although it has 416,000 end users on its platform, Hazlehurst has more than three times more than a year ago.
He said compliance is the biggest differentiator for the company.
“All competitors likewise provide the API layer needed to launch fintech and built-in banking products, but the key differentiation of synchronization lies in the tools and infrastructure they provide to customers and banks to manage compliance and ongoing operations,” he told TechCrunch.
Currently, the same 90 employees are in the same year, about 90 employees. Hazlehurst said he is proud of the fact that the company “can do it nearly double the number without the need for progressive staffing.”
The company makes money in a variety of ways, including monthly platform fee billing, ledger and account usage fees, trading, fraud monitoring, and KYC/KYB (knowing customers and knowing business). It also captures revenue shares of interchanges and deposit interests.
As for the effects of the synaptic collapse, Hezlehurst says the catastrophe was somehow hurt and helped others.
“We’ve experienced a lot of fintech looking for solutions and pathways to new banking relationships,” he told TechCrunch.
“I’ve always built with consumers and banks in mind first and foremost. What we witnessed in Synapse and Evolve clearly didn’t follow that approach.
From an industry perspective, the whole situation had “a rather important impact” in Hezlehurst’s view, with new fintechs being funded and new banks entering the ecosystem.
“It slowed down and sparked more attention across the market. Certainly, we see a deeper due diligence process with new partners, banks and customers. I think this is ultimately a good thing for the consumer and the industry as a whole,” he said.
Recently, Synctera has engraved a strategic partnership with Hawk, a company that uses artificial intelligence to combat financial crimes such as money laundering.
According to Hazlehurst, the future view is that the new funding will be partially charged on the expansion of the three sales teams and product development. Startups are also seeing a major opportunity to expand in Latin America. In Latin America, there is a lot of demand and there are several large customers.
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