- Embedded finance and Banking-as-a-Service (BaaS) company Synctera has secured $24.5 million in funding, taking its total capital raised to $126.7 million.
- Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram, and NAventures participated in the investment, which will support the company’s work with sponsor banks and fintechs, as well as strengthen the firm’s balance sheet.
- Headquartered in Palo Alto, California, Synctera made its Finovate debut at FinovateFall 2024. Peter Hazlehurst is co-founder and CEO.
Embedded finance and Banking-as-a-Service (BaaS) firm Synctera has raised $24.5 million in funding. Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram, and NAventures participated in the round, which brings the company’s total funding to $126.7 million. Synctera will use the capital to support its work with sponsor banks and fintechs as a growing number of banks pursue embedded finance and BaaS. The funding also bolsters Synctera’s balance sheet and “will provide the runway” to enable the firm to break even, Synctera noted in a statement.
“Synctera runs its business the way a bank partner hopes a platform will, with discipline and a clear view of risk,” NAventures Managing Director and VP of Innovation Philippe Daoust said. “This round is a vote of confidence in how they build.”
The funding comes at a time when Synctera believes banks are “taking another look at BaaS and embedded finance.” As more banks leverage financial services advisors to help them plan their modernization and expansion strategies, many of them are deciding that building out solutions on their own is too difficult and too expensive. “Two years ago, banks asked me whether to be in this business at all,” Synctera Co-Founder and CEO Peter Hazlehurst said. “Now they ask how to do it well. Banks answer for what happens in a fintech program, so I love seeing them come back to the table. Our job is to make that easy.”
Synctera’s banking and payments platform provides companies with everything they need to build and scale innovative banking products. The platform also gives sponsor banks the tools required to manage compliant relationships. Synctera’s multi-bank model spreads risk across institutions so that each one maintains responsibility for its own program, rather than resting every program on a single charter. This means that if one bank’s business model or risk appetite changes, the impact on other programs is mitigated and the customers behind each program remain protected. Synctera is betting that this approach makes the model a stronger, smarter alternative for many firms compared to trying to secure a charter or acquiring a bank outright.
“Banking is hard. It runs on trust, and trust is built over years,” Hazlehurst said. “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.”
Founded in 2020 and headquartered in Palo Alto, California, Synctera made its Finovate debut at FinovateFall 2024. At the conference, the company showed how its platform gives banks an end-to-end solution to initiate or scale a fully compliant Banking-as-a-Service program. The platform offers a suite of tools, workflows, and data infrastructure to enable banks to effectively manage compliance and conduct oversight over their entire platform.
Synctera acquired fellow Finovate alum Cable in April 2026. In buying the automated compliance assurance specialist, Synctera underscored its commitment to compliance, giving sponsor banks the continuous oversight regulators increasingly expect. Synctera has also made investments in compliance by building out its full Program Management and registering as a FinCEN-regulated money services business (MSB).
Photo by Floriane Vita on Unsplash