Sankaet Pathak, Founder, Synapse

San-Francisco-based startup Synapse, a provider of payment, deposit, lending and investment products as APIs, announced that they have raised $33 million in their Series B Capital Financing round. The round was led by a16z, with participation from existing investors Trinity Ventures and Core Innovation Capital. Another investor in the round includes 9Yards Capital.

Synapse’s mission is one of financial inclusion where they believe in being able to provide their financial products regardless of their socio-economic status (SES). According to Synapse, in their current form, banks generate revenue on lending and interest marginalising people with bad credit ratings. The company’s vision is to change that by providing alternatives to this and reducing the costs of banking operating systems.

Synapse plans on achieving through Back-Office Automation, Vertical Integration of all financial products and making financial products intuitive and easy-to-use.

Speaking about the funding round on Synapse’s blog, founder Sankaet Pathak said, “Financial services is a hard business to be in. It gets even more difficult when a company is being built the way Synapse is. We are working as hard as we can to deliver a full stack financial infrastructure product to every developer, big or small.”

“It’s extremely hard to deploy new products while scaling the existing ones and building an organization. Mostly all startup wisdom is against it. Having said that, this is the only way we can think we can realize our mission.”

Established in 2014, Synapse provides developer-facing APIs for companies building innovative financial products and bank-facing APIs so banks can automate their back-end operations.

by Megha Bhattacharya
Market Analyst at IBS Intelligence