“After a Challenging Year, Synapse Files for Chapter 11 Bankruptcy; Assets Set to be Acquired by TabaPay”
Following a turbulent period, banking-as-a-service (BaaS) startup Synapse has initiated Chapter 11 bankruptcy proceedings, with its assets slated for acquisition by TabaPay, as confirmed by both entities.
The acquisition agreement is subject to approval by the bankruptcy court.
Established in 2017, TabaPay, headquartered in Mountain View, operates as an instant money movement platform, having received backing from SoftBank in a 2022 funding round of undisclosed value. The total venture capital raised by TabaPay remains undisclosed.
Synapse, headquartered in San Francisco, was founded in 2014 by Bryan Keltner and CEO Sankaet Pathak. The company provided a platform enabling banks and fintech firms to develop financial services. Notably, Synapse secured a $33 million Series B funding round led by Andreessen Horowitz in 2019, following its rebranding from SynapseFi. In total, Synapse amassed just over $50 million in venture capital funding, with support from investors such as Trinity Ventures and Core Innovation Capital.
TabaPay highlighted Synapse’s inclusion in Deloitte’s 2023 Fast 500, showcasing growth exceeding 650% over a five-year period. However, Synapse faced challenges, including two significant layoffs over the past year, attributed to slowing growth.
Last October, Synapse downsized its workforce by approximately 40%, with 86 employees affected. This followed an earlier layoff of 18% of its staff in June. Synapse cited adverse “macroeconomic conditions” impacting its clients and platforms, hindering anticipated growth.
Source: techcrunch.com
