Solid Banking (formerly Wise) has filed to protect the bankruptcy of Chapter 11, according to documents filed with the United States Bankruptcy Court for Delaware’s District on April 7.
Founded in 2018, the Fintech Company had increased a total of about $ 81 million in funding from investors such as FTV Capital and the title. Solid were worth $ 330 million Since August 2022, according to the Pitchbook, when it announced a $ 3 million B -funding round, led by FTV.
Palo Alto, based in Solid, worked with Fintech and Vertical Saas and offered banking, payments, cards and API encryption products with easy to integrate. The company was regarded as “Fintech’s AWS” and claimed in August 2022 that it had increased 10 times in revenue, doubled its customers to 100 and became profitable. It is now in the process of trying to restructure or sell themselves, according to documents.
“After looking at all the options, we decided that a voluntary restructuring of Chapter 11 is the best course,” co -founder Arjun Thyagarajan told TechCrunch. “We are optimistic that the procedure for sale by the court will attract the right buyer, leading to a positive result for the company, customers and shareholders.
Solid was unable to raise more funds than its last round of funding and “face significant and costly differences”, according to bankruptcy deposits.
In 2023, Solid was the goal of a lawsuit filed by Series B Investor FTV Capital, which tried to get a $ 61 million investment.
FTV Capital’s lawsuit claimed, among other things, that solid co -founders Thyagarajan and Raghav Lal “lies on FTV about the company’s revenue, customer and businesses in general and further cheated FTV”. The company also asked to resign from Thyagarajan and Lal.
The co -founders of the start pushed back, depositing a compensatory against FTV and his partner Robert Anderson. In this, they described FTV as “an aggressive private shares company” and claimed that “the moment its investment was no longer profitable, [the firm was] resorting to fraud fraud, threats and intense tactics to try to get her money back. ”
According to bankruptcy, the FTV dispute was rejected in April 2024 “with a settlement bias achieved by the parties”.
Since the date of the report, SOLID said its capital structure consists of unpaid commercial debt totaling about $ 760,000 with a “limited amount of current revenue” and about $ 7 million in cash with about $ 2 million from non -liquid accounts. He claims that he now has only three employees.
The company has deposited bankruptcy below underpinning vwhich imposes shorter deadlines for submitting reorganization plans and allows for more flexibility in negotiating restructuring plans with creditors.
Solid is not the first start of Baas for bankruptcy. Last April, Synapse filed a famous chapter 11, hoping to sell its assets in a $ 9.7 million fire sale to another Fintech, Tabapay. But Tabapay walked.
One thing both of the newly established companies have in common? Evolve Bank & Trust was a partner bank. Specifically, another Fintech – Mercury – recently stated that he ended his relationship with Evolve.
Fintech Business Weekly’s Jason Mikula and Rk | Consultants Posted about bankruptcy in X. According to Mikula, SOLID’s 20 largest non -secured creditors include Amazon (AWS), the FS FS Vector, Visa, Plaid, Trulioo, Spade and a series of law firms.
TechCrunch arrived on FTV for comments, but had not heard the time of writing.
