Fintech startup Parker files for bankruptcy

Parker, a startup offering corporate credit cards and banking services for e-commerce businesses, has filed for bankruptcy and is widely reported to have shut down. The company was part of Y Combinator's winter 2019 cohort, with its Series A led by Valar Ventures. It came out of stealth in 2023 with a corporate credit card designed for e-commerce companies. Co-founder and CEO Yacine Sibous described the company's underwriting process as its secret sauce for assessing e-commerce cash flows. Sibous told TechCrunch that the startup aimed to build better financial products for e-commerce founders to increase the number of financially independent people. The company's website remains active and states that Parker has raised more than $200 million in total funding, including a $125 million lending arrangement. However, social media posts indicate that credit card partner Patriot Bank notified customers of the shutdown this week. Competitors have posted messages seeking to attract the startup's former customers. Parker filed for Chapter 7 bankruptcy protection on May 7. The filing lists assets between $50 million and $100 million and liabilities in the same range, along with between 100 and 199 creditors. Fintech consultant Jason Mikula said the company had been in talks for a potential acquisition that did not succeed, leaving small business customers in a difficult position and raising questions about the oversight by banking partners Piermont and Patriot. Parker did not respond to an email from TechCrunch. Sibous stated on LinkedIn that the company reached $65 million in revenue while repeating the $200 million funding total. He said that starting over he would avoid over-hiring, reactive decisions, and doomsayers.