Banking-as-a-service startup Synapse today confirmed it has laid off 86 people, or about 40% of the company.
The San Francisco-based company, which operates a platform that makes it easy for banks and fintech companies to develop financial services, has been open about past layoffs. In June, CEO Sankaet Pathak wrote in a blog post that the company had laid off 18% of its workforce as “current macroeconomic conditions” had begun to impact its customers and platforms, affecting its planned growth.
Today, via email, a company spokesperson sent the following statement: “We deeply regret saying goodbye to the incredibly talented and dedicated members of the Synapse team. However, we have a strong group to manage all of our operations and support our customers in the future. We have nothing to add at this time beyond what has been previously reported. »
Earlier this week, Jason Mikula, publisher of Fintech Business Weekly posted on that “one of the company’s largest customers, Mercury, has notified its non-renewal and plans to move directly to Evolve.” He had also heard that the company was laying off at least 130 people.
In 2019, TechCrunch reported on the Andreessen Horowitz-led Series B company’s $33 million raise after rebranding SynapseFi. This was the company’s last known fundraiser. In total, it raised just over $50 million in venture capital.
The startup was founded in 2014 by Bryan Keltner and Indian-origin CEO Sankaet Pathak, who came to the United States to study but became frustrated with the difficulty of opening a bank account without a U.S. Social Security history.
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