A US based startup called SynapseFI that helps banks and fintech companies work together to develop technology has raised funds amounting to $17 million in Series A funding round. The round was led by Trinity Ventures and Core Innovation Capital.
Other unnamed backers also participated in the particular round. However, it has been reported that the deal closed at the back end of last year. But the company was so busy developing new products, hiring and more that the company could not disclose about it then.
Founded in 2014, the core product of the company is a platform that helps banks and developers work together. It involves developer-facing APIs that enable companies to connect with banks to offer services, and also bank-facing APIs that allow banks to automate and extend back-end operations.
The products of the company include the basics like payment, deposit, lending and investment services, but it has also ventured into crypto with services that include a white-label wallet.
“There are three core things we want to fix in banking,” CEO Sankaet Pathak said. “The back office is still mostly manual today and we want to automate that. There’s a need for vertical integration… we want any large or small financial company to be able to come to us and operate at the same scale as the likes of Wells and Chase. We also want to automate financial advice using behavior science.”
Initially, the business focused on payments, but it gradually the company evolved to become a technology enabler for the financial industry. Currently, SynapseFI claims to have over 60 staff and it works with a list of over 100 financial industry clients.
As of now, the company has processed over $10 billion in transactions and helped bank more than 1.5 million people through its technology. The startup also has plans to expand and grow in international markets. Also, the CEO stated that the company is likely to reach breakeven by the end of the year.