There has been a major layoff in fintech startup Synapse. Sanket Pathak, the Indian-origin CEO of this company, has laid off about 86 people. Let us tell you that this is equal to 40 percent of the workforce of the startup.
In this period of Funding Winter, there has been a big layoff in fintech startup Synapse. According to news agency IANS, Indian-origin CEO of this company Sanket Pathak has laid off about 86 people. Let us tell you that this is equal to 40 percent of the workforce of the startup. This means that before this retrenchment there would have been around 215 employees in the company, but now the number of employees in the company has come down to around 130. Let us tell you that global VC firm Andreessen Horowitz has also invested in this company.
#Fintech startup #Synapse, backed by global VC firm Andreessen Horowitz (a16z) and run by Indian-origin CEO Sankaet Pathak, has laid off 86 people, or nearly 40 per cent of its workforce.#Layoff pic.twitter.com/izpMBpbfNI
— IANS (@ians_india) October 7, 2023
Layoffs have already been done
This is the second layoff done by the company this year. Earlier, the company had laid off about 18 percent of its staff in the month of June. At that time, the company’s CEO Sanket Pathak had said that he had to take this difficult decision of restructuring the team and reducing it in those areas in which the company was not able to estimate the growth correctly and had hired people. This time too the company has said – ‘We are very sad to say goodbye to the talented and dedicated members of the Synapse team. However, we have a strong team to manage all our operations and support our customers.
This startup was started in 2014
This startup was started in 2014 by Bryan Keltner and Sanket Pathak in San Francisco, USA. Its purpose was to provide an alternative to the banking system that had been running for years. Under this, efforts are made to improve ease of operation, efficiency and integration to conduct any banking transaction virtually. In the year 2019, this startup had raised $33 million from Andreessen Horowitz under Series B funding round.
The company became profitable only in 2022
In the month of June itself, Sanket Pathak had said that Synapse has achieved an important achievement in 2022 itself. Under this, the company became cash flow positive and reached profitability. However, the current circumstances are significantly impacting the company’s clients and platform, impacting growth.
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