Fintech startup Parker files for bankruptcy - BERITAJA

Parker, a well-funded startup offering firm in installments cards and banking services for e-commerce businesses, has revenge for bankruptcy and is wide reported to person unopen down.

The startup was portion of Y Combinator’s wintertime 2019 cohort, and its Series A was led by Valar Ventures. 

Parker came retired of stealth successful 2023, touting a firm in installments that it said was designed for usage by e-commerce companies. At the time, co-founder and CEO Yacine Sibous said the startup’s “secret sauce” was an underwriting process that could decently measure e-commerce rate flows. 

“We imagined building amended financial products for e-commerce founders pinch the ngo of expanding the number of financially independent people,” Sibous told TechCrunch.

Parker’s website is still up and doesn’t mention immoderate shutdown. Instead, a banner astatine the apical boasts that the institution has raised much than $200 million successful full funding, including a $125 cardinal lending arrangement.

However, aggregate societal media posts authorities that Parker’s in installments paper partner Patriot Bank sent a connection to customers this week confirming the shutdown. Parker’s competitors seemed to jump connected the news pinch their own posts seeking to lure complete the startup’s erstwhile customers.

And Parker’s troubles look to beryllium confirmed successful its May 7 filing for Chapter 7 bankruptcy protection. The filing states that the institution has betwixt $50 cardinal and $100 cardinal successful assets, pinch liabilities successful the aforesaid range. It besides states that Parker has betwixt 100 and 199 creditors.

Fintech advisor Jason Mikula precocious claimed that Parker had been successful negotiations for a imaginable acquisition, pinch the nonaccomplishment of those talks yet starring to the startup’s abrupt shutdown. Mirkula added that this “has near mini business customers successful a reliable spot” and besides raised “questions about [banking partner] Piermont’s and Patriot’s oversight of the program.”

Parker did not instantly respond to an email from TechCrunch. 

The company’s CEO Sibous has not explicitly acknowledged the shutdown aliases bankruptcy connected LinkedIn, and in a caller post, he repeated the $200 cardinal backing figure, adding that the institution had reached $65 cardinal successful revenue. But he besides said that if he started over, he’d do immoderate things differently, specified as: “Avoid over-hiring, reactive decisions, and doomsayers.”