Sat. Sep 21st, 2019

Synapse Receives $33m for Backend Fintech


Synapse Receives $33m for Backend Fintech

Synapse, a San Francisco-based fintech startup, has raised $33 million in a series B round led by a16z, with participation from existing investors Trinity and Core and unnamed individual investors, including 9Yards Capital, reports Henry Vilar of Fintech Futures, Finovate’s sister publication.

This brings the start-up’s total raised to $50 million, following a $17 million series A round in September 2018. Synapse says it has over three million clients using its cloud-based tools, with 10,000 new signups and five million API requests every day.

Synapse reports more than $2 billion as automated clearing house (ACH) and $40 million in payment card transactions for over 100 companies so far this year. In total, the company says it has facilitated more than $10 billion in transactions to date.

Synapse provides payment, deposit, lending, and investment products as APIs to financial technology companies, which in turn launch consumer-facing financial services.

The fintech plans to build direct processor integrations with both Mastercard and Visa, which it expects will speed up API calls around card issuance and open up features like just-in-time funding and dynamic spending controls.

It also intends to launch a brokerage accounts product and to enhance its loan origination and servicing API by making it easier for developers to apply for a warehouse line of credit and by adding automated text and phone loan collection support.

Toward the end of this year, the goal is to launch services in Europe and Canada, with payments, deposits, and debit card issuance to start, and lending and investment products to follow.

The firm plans a chatbot platform to answer customer questions, along with self-servicing tools for developers, a seed investing program, improvements to Synapse’s ID verification and video authentication stack, and add-ons around duplicate profile detection and fraud and transaction monitoring.

“After 2019, our goal is to add support for two key markets each year, plus one underserved market, where we will build consumer-facing products until developer ecosystems are built,” says cofounder and CEO, Sankaet Pathak.

As a part of the series B, a16z’s Angela Strange and Michael Hoffmeyer, director at the Crews Centre for Entrepreneurship at the University of Memphis, have joined Synapse’s board of directors.

The post Synapse Receives $33m for Backend Fintech appeared first on Finovate.


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