In a surprising turn of events, the San Francisco-based fintech startup Tally has announced that it is shutting down operations after attempting but failing to obtain additional funding. Founded in 2015 to help consumers manage and pay down credit card debts, Tally had raised a total of $172 million from top investors such as Andreesen Horowitz and others.
According to a LinkedIn post by CEO and Founder Jason Brown, Tally explored all available options but was “unable to secure the necessary funding to continue our operations.” The company had most recently raised $80 million in a Series D round in October 2022. Brown noted that closing down Tally was “not the outcome we had hoped for.”
For the past nine years, Tally’s platform aimed to simplify credit card debt repayment by offering consumers a lower interest loan to consolidate balances. In April, the startup unexpectedly announced it would shift focus to providing its technology to other companies rather than directly to consumers. At the time, Tally stated it had launched with a large publicly-traded partner that had over 50 million users. However, no such partnership was subsequently announced.
With past fundraising tallies reaching as high as $172 million from prominent backers, Tally’s shutdown due to lack of funds comes as a surprise. After exploring all options, the company was left with no choice other than to cease operations altogether. The news serves as a reminder of how rapidly market conditions can change, even for well-funded startups.
