Indian-origin entrepreneur fires 40% staffers of his fintech start-up
San Francisco-based fintech start-up Synapse, led by Indian-origin CEO Sankaet Pathak and backed by global venture capital firm Andreessen Horowitz (a16z), has laid off 86 employees, which is nearly 40% of its workforce. This comes after a previous round of layoffs in June when the company cut its staff by 18%. Pathak explained that the layoffs were necessary to restructure the team in areas that were overstaffed for unrealized growth or had become redundant.
Company regrets parting ways with talented team members
Synapse expressed deep regret over the departure of "incredibly talented and dedicated members of the Synapse team." Despite the layoffs, the company emphasized that it still has a strong team in place to manage its operations and support its customers moving forward. Founded in 2014 by Bryan Keltner and Pathak, the start-up's mission is to offer a viable alternative to legacy banking systems.
Synapse achieved profitability and positive cash flow in 2022
In 2022, Pathak announced that Synapse had achieved profitability and became cash flow positive. However, recent macroeconomic conditions have started to impact both clients and platforms, affecting the anticipated growth trajectory. Despite these challenges, Pathak remains confident in Synapse's underlying fundamentals and potential, stating that the steps they are taking will position the company for continued success and allow it to adapt to the evolving needs of its clients and the market.
About Synapse
Andreessen Horowitz (a16z) led a $33 million Series B funding round for Synapse in 2019. The fintech start-up's core mission is to provide operational simplicity, efficiency, and seamless integration for virtually any banking interaction. Synapse aims to offer an alternative to traditional banking systems while prioritizing operational simplicity, efficiency, and ease of integration for various banking interactions.
