Fintech startup Parker files for bankruptcy

Parker, a well-funded startup offering firm recognition cards and banking services for e-commerce businesses, has filed 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 recognition 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 currency flows. 

“We imagined gathering amended fiscal products for e-commerce founders with the ngo of expanding the fig of financially autarkic people,” Sibous told TechCrunch.

Parker’s website is inactive up and doesn’t notation 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 recognition paper spouse Patriot Bank sent a connection to customers this week confirming the shutdown. Parker’s competitors seemed to leap connected the quality with their own posts seeking to lure implicit 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, with 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, with the nonaccomplishment of those talks yet starring to the startup’s abrupt shutdown. Mirkula added that this “has near tiny concern customers successful a pugnacious spot” and besides raised “questions astir [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 oregon bankruptcy connected LinkedIn, and in a caller post, helium repeated the $200 cardinal backing figure, adding that the institution had reached $65 cardinal successful revenue. But helium besides said that if helium started over, he’d bash immoderate things differently, specified as: “Avoid over-hiring, reactive decisions, and doomsayers.”