Aug 12, 2024, 12:00 AM
Aug 12, 2024, 12:00 AM

Tally, a Fintech Pioneer, Shuts Down Amid Funding Struggles

Tragic
Highlights
  • Tally, a fintech company assisting with credit card debt, shuts down after funding failure.
  • The closure has impacted consumers who used Tally's services for debt management.
  • The future of Tally's employees and customers remains uncertain.
Story

Tally, a San Francisco-based fintech company that specialized in helping consumers manage and pay off credit card debt, has officially ceased operations. Founder and CEO Jason Brown announced the closure in a LinkedIn post, describing the decision as “sad and difficult.” He noted that despite the company’s efforts to explore all options, Tally was unable to secure the necessary funding to sustain its operations. At its peak, Tally was valued at $855 million and employed 183 people. However, the company faced challenges earlier this year when it announced plans to transition from a consumer-focused app to a business-to-business model. In April, Tally indicated it had a partnership with a large publicly-traded consumer company, which was expected to launch in July, but no further details were provided, and the announcement never materialized. Founded in 2015, Tally had raised a total of $172 million in funding over its nine-year lifespan. The company’s most recent funding round was an $80 million Series D led by Sway Ventures in October 2022. Previous investments included a $50 million Series C round in 2019, led by Andreessen Horowitz, with participation from notable Silicon Valley firms such as Kleiner Perkins and Shasta Ventures. The closure of Tally marks a significant shift in the fintech landscape, highlighting the challenges faced by startups in securing funding and adapting to market demands.

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