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Embedded finance and Banking-as-a-Service platform Synctera has raised $24.5 million from a group of investors that includes Multiplier Capital and Fin Capital. The round brings its total funding to $126.7 million; the company has also recently focused on compliance, including through its acquisition of Cable.
Embedded finance platform Synctera has raised $24.5 million in a funding round joined by Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram and NAventures. The financing brings the company’s total funding to $126.7 million and comes as Synctera emphasizes compliance and its role connecting companies with bank partners.
Synctera provides a platform and works with bank partners to help companies build and launch fintech apps and embedded banking products. The company launched in 2020. The report does not give a valuation, the terms of the round, or a breakdown of how the new capital will be used.
The investors named in the round are Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram and NAventures. The funding adds to earlier financing, bringing Synctera’s reported total to $126.7 million. The available report does not state whether existing investors also participated or provide further details about the investors’ commitments.
Synctera was founded by CEO Peter Hazlehurst, formerly head of Uber Money, head of Google Wallet and chief product officer at Yodlee, alongside CTO Kris Hansen and product head Dominik Weisserth. The report identifies the leadership team and funding but does not provide new details about staffing, customer numbers or the company’s financial performance.
Funding Supports Compliance Focus
The financing gives Synctera additional capital as it competes to support companies offering banking features through their products. In this model, a fintech or other business can provide services such as accounts or payments through a relationship with a bank and technology providers. Synctera’s platform is intended to help companies build those offerings with bank partners.
Compliance is a stated area of focus for the company. Banking partnerships bring responsibilities for oversight of programs and the firms involved, so tools and processes that help banks monitor activity can matter to both the platform provider and its partners. The funding announcement does not specify how much will go toward compliance, product development or other work, so the round’s practical effect on Synctera’s plans remains unknown.
The development is also a signal of continued investor financing for a provider in the Banking-as-a-Service market. It does not, by itself, establish that demand is increasing across the sector or that Synctera has secured new bank or fintech customers. Those outcomes are not detailed in the source report.
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Synctera’s Banking Platform and Cable Deal
Synctera launched in 2020 to help companies build fintech applications and embedded banking products through its platform and bank partnerships. Its business sits between companies seeking to offer financial services and the banking partners involved in delivering them. The report does not name specific bank partners or describe individual customer programs.
The company has recently put greater emphasis on compliance. Earlier this year, it acquired Cable, which the report describes as a company that tests controls continuously across banks, fintechs and service providers. The stated purpose is to show whether controls work in practice, rather than only appearing in written policies. The report does not give the acquisition price or describe how Cable’s technology has been integrated into Synctera’s platform.
CEO Peter Hazlehurst said banks had shifted from asking whether they should participate in Banking-as-a-Service to asking how to do it well. That is his characterization of conversations with banks, not an independently measured account of the whole market. Synctera’s approach depends on banks remaining willing to partner with fintech programs and maintain oversight of them.
“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 CEO
Round Terms and Spending Plans
The report does not disclose Synctera’s valuation, the financing terms, or the intended use of proceeds. It also does not say whether the round included investors beyond those named, or how much each investor contributed. No new customer wins, bank partnerships, revenue figures or product launches are announced in the source material.
The report provides Hazlehurst’s view that banks are again engaging with Banking-as-a-Service, but gives no independent data on how widespread that shift is. It is also unclear how Synctera will apply Cable’s control-testing capabilities across its products and partner programs following the acquisition. Those details would help show how the company’s compliance focus will affect its operations.
How Synctera Uses the Capital
The next developments to watch are any details Synctera shares about how it will deploy the $24.5 million and whether it announces changes to its products, compliance offering or bank partnerships. The source report sets out no timetable for those decisions and identifies no specific milestone tied to the financing.
Further information about the Cable integration could clarify how continuous control testing fits into Synctera’s service for banks, fintechs and other providers. Until the company provides more detail, the confirmed development is the funding round and its stated compliance focus—not a particular product launch or expansion plan.
Key Questions
How much did Synctera raise?
Synctera raised $24.5 million. The report says the funding brings its total raised to $126.7 million.
Who participated in the funding round?
The named investors are Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram and NAventures. The report does not give individual investment amounts.
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.
Why is compliance part of the story?
Synctera has recently focused on compliance and acquired Cable earlier this year. Cable tests controls across banks, fintechs and service providers, according to the report. The acquisition price and integration plans were not disclosed.
What will Synctera spend the new funding on?
The report does not say how Synctera plans to use the $24.5 million. It gives no budget, spending schedule or specific milestone connected to the round.
Source: finextra.com
