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Banking - as - a - service inauguration ( BaaS)Syncterahas conducted a restructuring that has lead in a faculty decrease , the company substantiate to TechCrunch .
WhileSyncteradid not share how many employees were impacted , a report inFintech Business Weeklypegs the number to be about 17 people , or about 15 % of the company . Doing the mathematics , that mean the company had about 113 employee prior to the cuts , and about 96 now .
Synctera built a political platform designed to lend together fintech company and patronise banks . Itrecently announcedan $ 18.6 million extension roundto its$15 million Series A , which was announced in March of 2023 . At that time , it also announced thehiring of Leigh Grossas its unexampled chief revenue police officer and BTG Pactual and Flutterwave as customers .
Investors includeNAventures , the embodied venture arm of National Bank of Canada;Lightspeed Venture Partners ; Fin Capital ; Banco Popular ; and Mana Ventures .
When ask about the Book of Job cuts , a company interpreter wrote via email:“Synctera has conducted a restructuring of the company that resulted in a reduction in staff and we are consecrated to assisting those who are impacted . We are attached to our current line of commercial enterprise along with the accession of SaaS offerings for banks and troupe . ”
The startup is not the only VC - backed BaaS company to have resort to layoffs to uphold cash recently . Treasury Primeslashed half its 100 - individual staffin February , a year after it announceda $ 40 million Series C raise . And last October , Andreessen Horowitz - back Synapseconfirmed that it hadlaid off 86 masses , or about 40 % of the company . Figure Technologies , which includes Figure Pay , lay off 90 people — or about 20 % of its manpower — last July .
Meanwhile , Piermont Bank reportedlycut tieswith startup Unit , Fintech Business Weekly reported .
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BaaS refer to various types of patronage models such as offering bank - like Service to other players in the industry ; or providing the charter and banking company service but not doing the underwriting ; or offering banking components , which is more of a fintech that is n’t a money box but provides some bank - similar service without a charter .
Players in BaaS have face challenges , especially regulatory crackdowns in 2023 . For instance , those providing BaaS to fintech married person accounted for more than 13 % of severe enforcement actions from Union bank governor last year , S&P Global Market Intelligence cover . Unfortunately , startup navigating those challenges may involve to resort to more layoffs to keep up .
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