Fintech startup Tally, backed by a16z ventures, shuts down as cash runs out

Tally, a fintech company renowned for helping consumers manage and pay off credit card debt, has announced its closure, marking a significant downturn for the nine-year-old startup. The company’s founder and CEO, Jason Brown, shared the news in a LinkedIn post earlier Monday, revealing that despite extensive efforts to secure additional funding, Tally could not sustain its operations.

The decision to shut down was described by Brown as “sad and difficult,” with the company ultimately unable to find the necessary financial support to continue. At its peak, Tally was valued at $855 million, according to PitchBook, and employed 183 people.

Founded in 2015 and based in San Francisco, Tally initially gained attention for its innovative approach to credit card debt management. The company’s model allowed users to consolidate high-interest credit card debt into a lower-interest loan, offering a streamlined solution for personal finance management. However, in April of this year, Tally announced a strategic pivot, revealing plans to sunset its consumer app and transition to a business-to-business (B2B) model. At that time, Tally indicated it had partnered with a major publicly traded consumer company with over 50 million users, and was set to launch in July. This partnership, however, never materialized into a public announcement.

The closure follows a series of significant funding rounds for Tally. The company had raised $172 million over its lifetime, including an $80 million Series D round in October 2022, led by Sway Ventures. Earlier rounds included a $50 million Series C in 2019, spearheaded by Andreessen Horowitz, with additional contributions from prominent venture capital firms such as Kleiner Perkins, Shasta Ventures, Cowboy Ventures, and Sway Ventures.

Tally’s inability to secure further funding and the subsequent shutdown reflect broader challenges within the fintech sector, where startups often face intense competition and financial pressures. The company’s closure is a blow to the fintech community and its user base, who relied on Tally’s services to manage credit card debt more effectively.

As the industry adjusts to these changes, the fate of Tally’s technology and team remains uncertain. TechCrunch has reached out to the company for further details and will provide updates as more information becomes available.