Solid, the ‘AWS of Fintech,’ Files for Chapter 11 Bankruptcy
Banking-as-a-service (BaaS) startup Solid (formerly known as Wise) has filed for Chapter 11 bankruptcy protection, according to court documents submitted on April 7, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The fintech firm, which once boasted a $330 million valuation, now seeks restructuring or a potential sale.
Key Financial and Legal Challenges
- Total Funding Raised: Nearly $81 million from investors like FTV Capital and Headline.
- Peak Valuation: \(330 million in **August 2022** after a **\)63 million Series B round** led by FTV Capital.
- Current Cash Reserves: Approximately $7 million, with $2 million in non-liquid accounts.
- Outstanding Debt: $760,000 in unsecured trade debt.
- Workforce Reduction: Down to just three employees.
The Rise and Fall of Solid
Founded in 2018, Solid provided embedded fintech solutions, including banking, payments, cards, and cryptocurrency services via APIs. The Palo Alto-based company positioned itself as the “AWS of fintech” and reported 10x revenue growth and profitability in 2022. However, its trajectory shifted due to:
- Failed Fundraising Efforts: Unable to secure additional capital post-Series B.
- Costly Litigation: A fraud lawsuit filed by investor FTV Capital in 2023, alleging misrepresentation of revenues and customer metrics.
- Countersuit by Founders: Co-founders Arjun Thyagarajan and Raghav Lal accused FTV of “strong-armed tactics” to recover its $61 million investment.
Bankruptcy Proceedings and Future Outlook
Solid filed under Subchapter V, a provision allowing faster restructuring negotiations with creditors. In a statement, Thyagarajan expressed optimism about finding a buyer:
“We believe a court-supervised sale process will yield the best outcome for stakeholders while allowing operations to continue.”
The FTV lawsuit was dismissed in April 2024 as part of a settlement, but the financial strain proved insurmountable.
Broader Fintech Industry Context
Solid joins a growing list of BaaS startups facing collapse:
- Synapse: Filed for Chapter 11 in 2024, with its assets initially slated for a $9.7 million sale to TabaPay (later abandoned).
- Evolve Bank & Trust: A common partner for troubled fintechs, including Mercury, which recently severed ties.
Creditors and Next Steps
According to filings, Solid’s top unsecured creditors include Amazon Web Services (AWS), Visa, Plaid, and regulatory consultancy FS Vector. The company aims to maintain operations during restructuring, though its long-term viability remains uncertain.
TechCrunch reached out to FTV Capital for comment but did not receive a response by publication time.
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