Synctera, a Backend-as-a-Service (BaaS) provider, secures $15 million in investment and wins a new client.

Synctera, a Backend-as-a-Service (BaaS) provider, secures $15 million in investment and wins a new client.

Synctera, a US-based banking-as-a-service and embedded finance provider, has secured a $15 million funding round, led by Fin Capital and Diagram Ventures. Existing investors First & Main, Evolution, and True Equity also participated in the funding round.

Following the funding, Synctera's growth strategy centers on expanding its Banking-as-a-Service (BaaS) platform by launching new offerings such as Fintech-as-a-Service (FaaS) targeted at community banks. This new FaaS product includes a dashboard enabling banks to track transactions and review potential customers, positioning Synctera as an enabler for banks to provide advanced transaction and ACH processing services via APIs.

Synctera aims to leverage the rising demand for digital banking solutions by enhancing automation and compliance support. This approach aligns with the broader Fintech-as-a-Service market trend, which is rapidly growing and expected to reach an estimated valuation of $1.5 trillion by 2033, driven by cloud computing, AI, blockchain, and open banking initiatives.

The company's strategy is to extend its API-driven BaaS platform to deliver comprehensive fintech and banking services. It plans to target community banks with specialized FaaS solutions to streamline transaction monitoring and customer onboarding. Synctera also emphasizes compliance support and integration speed to attract fintech partners needing scalable infrastructure. The company aligns with technological advancements in cloud and automation to reduce manual underwriting and operational tasks.

This strategy aims to capture growth by enabling banks and fintechs to capitalize on the increasing adoption of digital banking infrastructure without heavy investment in their own IT systems.

Meanwhile, Bolt, a new customer of Synctera, specializes in facilitating one-click online checkouts. Bolt plans to begin offering financial services to consumers with support from its bank partner Midland States Bank. The partnership with Synctera will allow Bolt to provide brands with more ways to engage with their customers.

Synctera has also formed a partnership with Hawk, an AI company that fights financial crime. The company is gearing up to meet the more complex needs of its larger customers with the new funding.

Logan Allin, founder and managing partner of Fin Capital and Synctera board member, praised Synctera's focus on doing things the right way and putting banks and end customers first. Frédéric Latreille, partner at Diagram Ventures and a member of the board of Synctera, expressed pleasure at continuing to support Synctera.

Mastercard is the headline partner for Open Banking Expo USA, which will take place on June 26, 2025, at the Hilton Midtown in New York. The event offers information about speakers, agenda, and partners, and registration is available here.

Peter Hazlehurst, co-founder and CEO of Synctera, called the funding round a "vote of confidence". The total amount raised by Synctera to date is now $94 million. Ryan Breslow, founder and CEO of Bolt, stated that partnering with Synctera will allow Bolt to provide brands with more ways to engage with their customers.

In summary, Synctera's new funding round will support its growth trajectory and enable it to provide advanced fintech and banking services to a wider range of customers, including community banks. The company's focus on compliance, automation, and integration speed positions it well to capitalize on the growing demand for digital banking solutions.

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