Synctera Raises $24.5M to Support Banking Platform Growth

Synctera, a San Francisco, CA-based provider of an embedded finance and banking-as-a-service (BaaS) platform, has raised $24.5 million in a new funding round, bringing the total amount to $126.7 million.

The round saw backers including Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram, and NAventures.

The company plans to use the funding to strengthen its financial position, provide runway to reach break-even and continue supporting its sponsor bank and fintech partners.

What is Synctera?

Founded in 2020, Synctera provides software that helps fintech companies build and operate banking and payment products. It also gives sponsor banks the tools needed to manage their fintech partnerships and oversee compliance requirements.

Read More:Delix Therapeutics Secures $100M in Series C Funding

Synctera is a technology provider, not a bank. It's platform uses a multi-bank model in which different sponsor banks remain responsible for their own programmes. This approach distributes risk rather than placing every programme under a single bank charter.

The model is designed to reduce disruption if a bank changes its business strategy or risk appetite. It also helps protect consumers who use financial products built on the platform.

Synctera works with both fintech companies looking to launch financial services and banks seeking technology to manage compliant partnerships.

How Much Funding Has Synctera Raised?

Synctera has raised $126.7 million in total funding following its latest $24.5 million round.

The company did not provide details of its previous funding rounds, including their amounts, dates or investors, in the announcement.

Who Invested in Synctera’s Funding Round?

The latest round included investments from:

• Multiplier Capital
• Fin Capital
• 1st & Main Growth Partners
• Diagram
• NAventures

Synctera did not identify a lead investor or specify which participants were existing or new investors.

Why the Funding Matters

The funding will provide Synctera with additional financial runway as it works towards break-even. It will also support the company's continued work with sponsor banks and fintech businesses.

The company said banks and fintechs need reliable platforms because banking programmes depend on long-term technology and operational support. Strengthening its balance sheet is intended to help Synctera provide that support.

Who founded Synctera?

Synctera was founded in 2020 by Peter Hazlehurst. The company is headquartered in San Francisco, California.

"Banking is hard. It runs on trust, and trust is built over years," said Peter Hazlehurst, Co-founder and CEO of Synctera. "You can't mess with people's money. The banks and FinTechs that build on us need to know we'll be here for the long run. We raise with that in mind, and we're grateful to the investors, banks and FinTechs who back us."

Market and Business Growth

Synctera serves fintech companies developing embedded finance products and sponsor banks managing financial services partnerships.

In October, the company introduced Synctera Labs, a launch platform designed for fintech teams developing new embedded finance ideas.

The platform provides access to real accounts, cards and customers, with compliance operations and oversight built in. It aims to help fintech teams test and launch programmes without the upfront cost of building a custom solution.

What Happens Next?

Synctera plans to use the new funding to strengthen its balance sheet, work towards break-even and continue supporting its banking and fintech partners.

The company is also preparing to launch the first programmes through Synctera Labs in February 2027. It said more details about the platform will be shared soon.

Read More:Spines Raises $64M to Expand Its AI Publishing Platform