Fintech startup Parker files for bankruptcy

Parker, a cash-rich startup that provides banking services for corporate credit cards and e-commerce businesses, has filed for bankruptcy and is widely reported to have shut down.

The startup is part of Y Combinator’s Winter 2019 cohort, and its Series A was led by Valar Ventures.

Parker came out of stealth in 2023 and promoted corporate credits for use by e-commerce companies. At the time, co-founder and CEO Yassine Sibos said the startup’s “secret sauce” was its underwriting process, which allows it to properly value e-commerce cash flows.

“We envisioned building better financial products for e-commerce founders with a mission to increase the number of financially independent people,” Thibou told TechCrunch.

Parker’s website is still up and running, with no mention of closure. Instead, the banner at the top boasts that the company has raised more than $200 million in total funding, including a $125 million loan commitment.

But Parker’s credit card partner, Patriot Bank, sent a message to customers this week confirming the closure, according to multiple social media posts. Parker’s competitors appear to have jumped on the news with posts of their own in an attempt to lure former customers of the company.

And Parker’s problems appear to have been confirmed with its May 7 Chapter 7 bankruptcy filing. The company has assets between $50 million and $100 million, with debt in the same range, according to filings. It also states that Parker has between 100 and 199 creditors.

Fintech consultant Jason Mikula recently claimed that Parker was in talks for a potential acquisition, and that those failed negotiations ultimately led to the startup’s abrupt closure. Mirkula added that this “puts small and medium-sized business customers in a difficult position”. [banking partner] Pyrmont and Patriot oversee the program. ”

Parker did not immediately respond to an email from TechCrunch.

The company’s CEO, Cibous, did not explicitly confirm that LinkedIn was shutting down or going bankrupt, but reiterated the $200 million funding figure in a recent post, adding that the company’s revenue had reached $65 million. But he also said that if he were to do it all over again, he would change a few things, including “avoiding overhiring, reactive decisions and doomsayers.”