Banking-as-a-Service startup (BaaS) Synctera has undertaken a restructuring that has resulted in staff cuts, the corporate confirmed to TechCrunch.
While Synctera didn’t say what number of employees were affected, a report said Fintech Business Weekly The number is estimated at around 17 people, or around 15% of the corporate. Converted, which means the corporate employed around 113 people before the cuts; today there are around 96.
Synctera has developed a platform that goals to bring together fintech corporations and sponsoring banks. It recently announced an extension round of $18.6 million to his $15 million Series Awhich was announced in March 2023. That was also announced at the moment Hiring by Leigh Gross as the brand new Chief Revenue Officer and BTG Pactual and Flutterwave as customers.
The investors include NAventures, the company enterprise arm of the National Bank of Canada; Lightspeed Venture Partners; FinCapital; Banco Popular; and Mana Ventures.
When asked concerning the job cuts, an organization spokesperson wrote via email: “Synctera has undertaken a corporate restructuring that has resulted in workforce reductions and we are committed to helping those affected. We are committed to our current business area and the expansion to include SaaS offerings for banks and companies.”
The startup is not the only VC-backed BaaS company to resort to layoffs to get monetary savings recently. Treasury Prime has cut half of its 100-person staff in February, a yr after the announcement a $40 million Series C raise. And last October, Andreessen Horowitz supported Synapse confirmed that this was the case 86 people laid off, i.e. around 40% of the corporate. Figure Technologies, which incorporates Figure Pay, 90 people laid off – or about 20% of its workforce – last July.
In the meantime, Piermont Bank reportedly Cut ties with startup unit, Fintech Business Weekly reported.
BaaS refers to several types of business models, similar to: B. offering bank-like services to other players within the industry; or the supply of charter and banking services, but not the underwriting; or offering banking components, which is more of a fintech that isn’t a bank but offers some bank-like services without charter.
BaaS players faced challenges in 2023, particularly regulatory crackdowns. Last yr, greater than 13% of major enforcement actions by federal banking regulators involved those providing BaaS to fintech partners. Reports from S&P Global Market Intelligence. Unfortunately, startups that overcome these challenges could have to resort to further layoffs to maintain up.
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