Solid, which claimed to be the ‘AWS of fintech,’ files for bankruptcy after raising nearly $81M in funding

Banking-AS-Service Stall Solid (which was previously called WISE) has provided a protection from bankruptcy, Chapter 11, according to the documents submitted in the US Banking Court for Dilayer Province on April 7.

Fintech was founded in 2018, raising a total of about $ 81 million in financing from investors such as FTV Capital and Hearline. The Solid value was $ 330 million as of August 2022, according to Pitchbook, when it announced a $ 63 million series of financing by FTV.

Palo Alto, which is based in Palo Alto, has worked with Fintech and Vertical Saas companies, and provided banking services, payments, cards and coded currency products through easy -to -integral application programming facades. The company described itself as “Aws of Fintech” and claimed in August 2022 that it had grown 10x in revenues, doubled its customers to 100 and became profitable. He is now in the process of trying to restructure or sell itself, according to the documents.

“After looking at all options, we decided that the voluntary structure of Chapter 11 is the best path,” co -founder Arjun Thiajarajan told Techcrunch. “We are optimistic that the sale under the supervision of the court will attract the appropriate buyer, which leads to a positive result for the company, customers and shareholders. Solid intends to continue to operate its work in the regular course through this process.”

Solid has not been able to collect more capital since the last financing round and “faced large and expensive lawsuits,” according to bankruptcy files.

In 2023, Solid was the goal of the lawsuit filed by the investor from the B Ftv Capital, which was trying to restore its investment of $ 61 million.

In other things, FTV Capital claimed that the strong founders thyagarajan and Raghav Lal “lied to FTV regarding the company’s revenues, customer pressures, business in general and more FTV.” The company also requested Thiajarajan and to resign.

The founders pushed the startup back, and presented a suit against FTV and its partner, Robert Anderson. In this, they described FTV as a “private, aggressive stock company”, and claimed that “the moment when its investments are no longer profitable, [the firm was] Resorting to makeup demands for fraud, threats and strong armed tactics to try to recover her money. “

According to bankruptcy deposit, FTV claims were rejected in April 2024 “with bias under a settlement reached by the parties.”

As of the date of the petition, Solid said that its capital structure consists of an unacceptable commercial debt with a total of about 760,000 dollars with a “limited amount of current revenues” and about $ 7 million in cash on hand with about $ 2 million of those detained in non -liquid reserve accounts. She now claims that she only has three employees.

The company has applied for bankruptcy under subchapter V, which imposes shorter final dates to provide reorganization plans and allows to increase flexibility in negotiating restructuring plans with creditors.

Solid is not the first start starting to submit bankruptcy. Last April, the famous clashes were offered to Chapter 11, hoping to sell its assets in selling 9.7 million dollars to another Findte, Tabapy. But Tabapay walked.

One thing common to startups? EvolVE Bank & Trust was a partner bank. It is worth noting that Fintech is another – Mercury – recently announced that she had ended her relationship with EvolVE.

Fintech Business Weekly’s Jason Mikula and RK | Advisers on bankruptcy posted on X. According to MIKULA, it includes the 20 largest creditors of Solid Amazon (AWS), the FS Vector, VISA, Plaid, Trolioo, Spade, and number of law firms.

Techcrunch arrived at FTV for comment but he did not hear again at the time of writing this report.