Jason Brown, the San Francisco-based company’s CEO, said the company couldn’t raise enough funding to continue operations
San Francisco-based debt-management company Tally is shutting down after failing to line up enough funding to continue operating. Company CEO Jason Brown announced the closure Monday on LinkedIn. It was unclear when, exactly, the Andreessen Horowitz -backed startup would close its doors or how many employees would be affected.
“After nearly nine years of helping people manage and pay off their credit card debt, we have made the difficult and sad decision to shut down Tally,” Brown said in the post. “This was not the outcome we had hoped for.”As of April, Tally had raised more than $200 million, according to the company itself. Its venture backers valued it at $855 million when it raised its Series D round two years ago, according to PitchBook. Founded in 2015, Tally originally offered a service that helped people consolidate their credit-card debt. It would pay off customers’ credit cards and give them a single, lower interest rate loan for the same amount.Ex // Top Stories As political plays prompt progressive praise, observers say Pelosi same as ever Is Nancy Pelosi shifting to the left? Is she building bridges to set up a successor? Observers say answer is much simpler Chinatown ready to heal 'restless spirits' at Hungry Ghost Festival The City is gearing up to celebrate one of Chinese culture's most historic traditions Layoffs loom as SFUSD freezes some hiring before school year Teachers, principals and clerks prioritized as district contends with hundreds staff vacancies before start of school year But in April, Tally announced it was changing direction and would wind down its consumer business. Instead of working directly with individuals, it planned to team up with other financial institutions to allow them to offer its services to their customers. It planned to hand off its debt- consolidation customers to its new partners. At the time, it said a large “consumer company” it had signed up as a client would roll out its service in July.“What we’ve discovered … is that our overall impact can be much greater if we enable partners to leverage our technology,” he said in a press announcement then. Tally was founded in an era of ultra-low interest rates. But rates have jumped over the last two years, likely making it so the company was paying more to borrow money than its older customers were paying it.If you have a tip about tech, startups or the venture industry, contact Troy Wolverton at twolverton@sfexaminer.com or via text or Signal at 415.515.5594.
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