$855M Valued FinTech Firm Tally Shuts Down Amid Cash Crunch

Startups usually thrive because of their unique ideas and desirable products or services.

However, to keep running, they turn to investors to support them financially through various funding rounds.

Unfortunately, sometimes these startups go bust when they’re unable to gather the funds required to remain in operation and must ultimately announce their closure.

Such is the case with financial technology firm Tally, which recently revealed it was shutting down.

So, let’s explore why the company is winding up its operations.

Why Is Tally Shutting Down?

Through a post published on LinkedIn, Tally’s Founder and CEO, Jason Brown, announced that the company that helped people manage and pay their credit card debt is shutting down.
Founded in 2015, Tally enabled many people to pay off billions of dollars of debt and empowered them to regain control of their financial futures.
The nine-year-old fintech company, which had a workforce of around 183 employees and a valuation of $855 million as per PitchBook, is closing as it couldn’t secure the necessary funds required to keep it operating.
The company had around 28 investors including names such as Andreessen Horowitz (AKA a16z), Sway Ventures, Kleiner Perkins, Shasta Ventures, Cowboy Ventures and others.
Tally also revealed that it had raised over $200 million in its tenure.
Its latest funding round came in 2022, where the company raised $80 million in a Series D funding round led by Sway Ventures, before which its Series C funding round led by Andreessen Horowitz raked in $50 million in 2019.
In April 2024, Tally made an announcement saying it was pivoting from its consumer application and turning to a B2B model.
In the announcement, the fintech firm also revealed that its first partner was a large publicly traded consumer company with more than 50 million users that planned to launch Tally’s software to its users in July 2024.
At the time, the company’s CEO said, “We started the company going straight to the people who needed it most. But what we’ve discovered — and as market dynamics have gotten even more challenging — is that our overall impact can be much greater if we enable partners to leverage our technology.”

Source

What Did Founder And CEO Jason Brown Say?

Through the post published on LinkedIn, Tally’s Founder and CEO, Jason Brown, conveyed his dismay at having to shut down the company.
Excerpts from the post titled ‘Farewell to Tally: A Journey to Remember’ read, “After nearly nine years of helping people manage and pay off their credit card debt, we have made the difficult and sad decision to shut down Tally.”
“This was not the outcome we had hoped for, but after exploring all options, we were unable to secure the necessary funding to continue our operations.”
“From the start, Tally was built with a singular goal: to help people break free from the crushing burden of credit card debt.”
“We've celebrated the successes of our users as if they were our own, and we've taken every opportunity to innovate based on their needs.”
“In closing, I want to express my deep gratitude to everyone who was a part of Tally's journey. It has been an honor to work alongside you, and I am proud of what we've achieved together.”
“As we close this chapter, I look forward to seeing what the future holds for each of us. Thank you for being a part of Tally.”

Do you think Tally’s closure will discourage companies engaged in the same field or do you think the goal that the company worked towards will inspire others to form new companies or services?

Let us know in the comments below!

First published on Wed, Aug 14, 2024

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