Backed by a global capital firm, Synapse, a San-Fransico based financial technology startup, intends to cut 40 per cent of its staff. The startup is headed by Sankaet Pathak, CEO, Synapse, who is of Indian origin. The decision will affect 86 roles at the tech startup.
The company mentioned that the decision is a part of its reorganising strategy, specifically for its overstaffed departments and duplicated roles. With this, it aims to move further towards its growth trajectory. As per media reports, the company has confirmed that one of its major clients, the business banking platform, Mercury, would not be renewing its contract and was opting to work directly with its banking partner, Evolve Bank and Trust.
In response to the layoffs, the company expressed deep sorrow at having to bid farewell to some of its ‘exceptionally skilled and committed members’ . Nevertheless, the company underlined its confidence in the capability of its current team to manage its operations and continue to support its customers.
This is the second round of layoffs at the tech company. The earlier one witnessed a reduction in headcount by 18 per cent in June 2020, affecting 63 roles.
Founded in 2014 by Bryan Keltner and Sankaet Pathak, Synapse entered the market with the goal of offering a practical alternative to traditional banking systems. The startup’s main aim was to deliver operational simplicity, efficiency and seamless integration for banking transactions of all kinds.
It facilitates other startups in providing deposit, payment and credit products by acting as an intermediary between its clients and their banking associates. In 2019, Andreessen Horowitz led a Series B funding round of $33 million for the company.