US-based banking-as-a-service (BaaS) and embedded finance platform Synctera has raised USD 24.5 million in new funding, bringing its total funding to USD 126.7 million. Participants include Multiplier Capital, Fin Capital, 1st & Main Growth Partners, Diagram, and NAventures. The company says the funding strengthens its balance sheet and provides the runway it needs to reach break-even.
Compliance at the centre of the model
Synctera acquired compliance testing company Cable in April 2026. Cable tests controls continuously across banks, fintechs, and service providers, rather than relying on sampling. Synctera has also built a programme management team and registered as a FinCEN-regulated money services business. Since the acquisition, Cable has added one bank client and four fintechs, and is offering its services free of charge to sponsor banks in Synctera's network.
Ash Vaidya, Managing Director at Multiplier Capital, said embedded finance only works when banks can trust what happens on their charter, pointing to Synctera's independent ledger, automated reconciliation, and continuous compliance testing. Philippe Daoust, Managing Director and VP, Innovation at NAventures, said Synctera runs its business with discipline and a clear view of risk.
Banks returning to BaaS
Main Street Bank, based in Massachusetts, has joined Synctera's network of sponsor banks. Synctera now works with eight active sponsor banks, with two more due to launch programmes in the fourth quarter of 2026. Walter J. Dwyer IV, CEO of Main Street Bank, said the bank wanted a partner that treats compliance as part of the product. Synctera's multi-bank model spreads programmes across several banks rather than relying on a single charter.
Peter Hazlehurst, Co-founder and CEO of Synctera, said that two years ago banks asked whether to be in the BaaS business at all, while they now ask how to do it well. Synctera has signed 20 clients in 2026 and doubled its gross merchandise value and interchange revenue year on year. Its Synctera Labs launch platform, introduced in October 2026, is due to go live with its initial programmes in February 2027.
