Solid, which she claimed to be “Aws of Fintech”, drops for bankruptcy after collecting approximately $ 81 million in financing

Banking is like starting the service solid (It was previously called “Al -Hakim) a request to protect bankruptcy, Chapter 11, according to what it mentioned Documents It was submitted to 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. solid He was 330 million dollars As of August 2022, according to Pitchbook, when it was announced Funding round B at a value of $ 63 million Leaded 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 He claimed in August 2022 It grew 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 costly lawsuits,” according to bankruptcy files.

In 2023, the crucifixion was a goal a The lawsuit filed by the investor from the B Ftv Capital seriesWho 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 that, they described FTV as a “aggressive company for private stocks”, and claimed that “the moment when its investments were no longer profitable, (the company) resorted to makeup claims for fraud, threats and strong armed tactics to try to recover its 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 applied for bankruptcy below Branch vWhich imposes a shorter final dates to provide reorganization plans and allows further flexibility to negotiate the structural plans with creditors.

Solid is not the first start starting to submit bankruptcy. Last April, the famous clamp Submitted to Chapter 11Hoping to sell its assets in selling a $ 9.7 million fire to Fintech, another, Tabapay. but Tabapay walk.

One thing common to startups? EvolVE Bank & Trust was a partner bank. It is worth noting that Fintech is another – Mercury – recently announced that it is End With development.

Fintech Business Weekly’s Jason Mikola and RK | Consultants It was published on bankruptcy on X. According to McCola, it includes the 20 largest creditors of Solid Amazon (AWS), the FS Vector, VISA, Plaid, Truloo, SPAIOO, and number of law firms.

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