Banking-Hissab-e-Servis Startup Solid (previously called Wise) Chapter 11 is filed to protect bankruptcy, according to Document April April has been filed in the US bankruptcy court for Delaware district.
Founded in 2018, the Fintech company raised a total of about $ 81 million from investors such as FTV Capital and title. Solid Was Worth $ 330 million Until August 2022, according to the pitchbook, it announced the fund of $ 63 million B. Round led by FTV.
Palo-based solid fintech and vertical sauses work with organizations and easily provide banking, payment, cards and cryptocurrency products through Integret API. The company identified itself as “AWS of Fintech” and claimed in August 2022 that it earned 10X, doubled its customers to 100 and became profitable. According to the document it is now in the process of trying to reconstruct or sell.
According to the bankruptcy filing, Solid has not been able to raise more capital from its last fund round and “faces significant and expensive cases”.
In 2021, Solid was a Series B Investor FTV Capital’s aim to investigate a case, which was trying to regain his $ 61 million investment.
FTV Capital’s case also claimed among other issues that SOLID-Founder Arjun Thayagaran and Raghav Lal were usually lying on FTV about the company’s revenue, customer churning and business and FTV was more deceived. ” The company asked Thaigrajan and Lal to resign.
Startup co-founder FTV and its partner Robert Anderson filed a counter-set against Anderson and pushed back. In it they described FTV as the “offensive private equity firm” and claimed that “at the moment its investment was no longer profitable, [the firm was] To resort to make-up claims of fraud, threats and strong armed techniques. “
According to the bankruptcy filing, the FTV case litigation was dismissed in April 2021, “with the parties under a settlement under superstition.”
As the date of the application, Solid said that its capital structure contains about $ 760,000 in cash with a total “limited amount of current revenue” in its capital structure and about $ 760,000 in cash with about $ 760,000 in non-moving reserve accounts. It claimed that there are only three employees now.
The company has filed under bankruptcy Sub -chapter vWhich imposes a short time to file a reconstruction plan and allows more flexibility to discuss the reorganization plan with the creditors.
Solid is not the first BAS startup to file for bankruptcy. Last April, Senaps was famously filed for the 5th chapter, hoping to sell its assets to another fintech, Tabapay, for the sale of $ 9.7 million fires. But he walked in the tabap.
One thing was both similar to startup? Evelov Bank and Trust was a partner bank. Significantly, another fintech – Mercury – recently announced that it ended its relationship with evolution.
Jason Mikula and RK of Fintech Business Weekly | Consultants posted on the X -bank. According to Mikula, the 20 largest unsafe credits of Solid include Amazon (AWS), regulatory consulting shop FS vector, visa, plaid, trolio, spade, spade and several legal organizations.
TechCrunch has reached Solid and FTV for comments, but no more listening to writing.
