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Solid, which claimed to be the ‘AWS of fintech,’ files for bankruptcy after raising nearly $81M in funding
Banking-as-a-service startup Solid has filed for Chapter 11 bankruptcy protection, a surprising turn of events given its impressive fundraising record. Despite boasting a valuation of $330 million and having secured nearly $81 million in funding from investors such as FTV Capital and Headline, the company is now seeking to restructure or sell itself.
In a shocking twist, Solid’s bankruptcy petition reveals that it has only three employees on its payroll at the moment, with capital structure consisting of unsecured trade debt totaling approximately $760,000. The startup also claims to have around $7 million in cash on hand, but a significant portion is tied up in non-liquid reserve accounts.
The company’s downfall comes amid intense litigation from one of its previous investors, FTV Capital. In 2023, the private equity firm launched a lawsuit against Solid and its co-founders Arjun Thyagarajan and Raghav Lal, accusing them of dishonesty regarding the startup’s revenues, customer churn, and overall business operations. The two founders pushed back aggressively, describing their investor as “an aggressive private equity firm” that resorted to underhanded tactics when it no longer saw a return on its investment.
In the end, the litigation was dismissed in April 2024 as part of a settlement agreement between the parties. It is unclear what impact this legal wrangling had on Solid’s financial situation, but it is undeniable that the startup’s fortunes have taken a drastic turn.
Source: https://techcrunch.com/2025/04/09/solid-which-claimed-to-be-the-aws-of-fintech-files-for-bankruptcy-after-raising-nearly-81m-in-funding/
