Fintech startup Parker files for bankruptcy

Parker, a well-funded startup that provides corporate credit cards and banking services to e-commerce companies, has filed for bankruptcy and is widely reported to have closed its doors.

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

Parker came out of stealth in 2023promoting corporate credit that he said was designed for use by e-commerce companies. At the time, co-founder and CEO Yassin Sibous said the startup’s “secret sauce” was an underwriting process that could properly value e-commerce cash flows.

“We envisioned building better financial products for e-commerce founders with the goal of increasing the number of financially independent people,” Sipos told TechCrunch.

The Parker location remains open and reports no closures. Instead, there’s a banner at the top boasting that the company owns it It raised more than $200 million Of the total financing, including lending arrangements worth $125 million.

However, several social media posts indicate that Parker’s credit card partner, Patriot Bank, sent a letter to customers this week. Confirm shutdown. Parker’s rivals appear to be jumping on the news Their own Supports Seeking to attract previous clients to the startup company.

Parker’s troubles appeared to be confirmed in her May 7 filing for Chapter 7 bankruptcy protection. The filing states that the company has assets between $50 million and $100 million, with liabilities in the same range. It is also stated that Parker has between 100 and 199 creditors.

Fintech consultant Jason Mikula recently He claimed Parker was in negotiations for a potential acquisition, and the failure of those talks ultimately led to the startup’s abrupt closure. Mercola added that this “left small business customers in a difficult position” and also raised “questions about (banking partner) Bermont and Patriot’s oversight of the program.”

Parker did not immediately respond to an email from TechCrunch.

CEO Sipos has not explicitly acknowledged LinkedIn’s closure or bankruptcy In a recent postHe repeated the funding figure of $200 million, adding that the company’s revenues had reached $65 million. But he also said that if he were starting over, he would do some things differently, such as: “Avoid over-hiring, reactionary decisions, and pessimists.”