Blinds closed following an 8-year duration.
In the ever-evolving world of fintech, 2024 saw a significant shakeup as companies like Cushion and Tally announced their shutdowns. The primary reason for these closures was financial challenges and the broader downturn in the tech sector, which led to layoffs and operational cutbacks.
Cushion, founded in 2016 as an overdraft fee negotiation fintech, initially made a name for itself by securing $15 million in bank fee refunds with its investments. However, in 2020, the company pivoted its focus to helping consumers manage buy now, pay later loans and other bills. This shift was inspired by the personal experience of Cushion's founder, Paul Kesserwani, who struggled with managing BNPL loans.
The company's BNPL and bill aggregator, built over two years by Kesserwani's team, was designed to comb through users' emails to compile all the bills and BNPL loans they needed to pay. It was even labelled as "the only 'Plaid for BNPL' on the market."
Cushion's BNPL and bill aggregator processed 30 million emails and over $300 million in BNPL loans. In under a year, the company processed $40 million in payments. In May 2022, Cushion secured a $12 million raise, raising its valuation to $82.4 million, according to PitchBook.
Despite these achievements, Cushion was unable to maintain viability amid the tough market conditions. The company's winddown aligns with expectations laid out in the 2024 State of Fintech report by F-Prime Capital. The shutdown was announced by Kesserwani in July 2025.
Unfortunately, Kesserwani did not return a request for comment, and neither did several of Cushion's investors. It is implied that Cushion held purchase licensing rights, but this was not explicitly stated.
The fintech sector overall was under pressure to reach profitability, and many startups faced shrinking funding and needed to reduce costs aggressively, which often resulted in shutdowns or restructuring. The example of Cushion’s closure coincides with broader tech layoffs affecting fintech and other sectors in 2025, reflecting a difficult funding and operational environment.
As for Tally, there is no direct information on its shutdown in the provided search results. However, given the similar timing and sector dynamics, it is reasonable to infer that Tally likely faced comparable financial and market pressures as Cushion, leading to its closure. The fintech sector will continue to face challenges in the coming years, but it remains a dynamic and innovative industry with the potential for significant growth.
Investing in technology-driven business solutions, such as Cushion's overdraft fee negotiation platform and later BNPL loan management service, promises substantial returns. However, navigating the tumultuous fintech industry requires careful consideration of market conditions, as evidenced by Cushion's shutdown and Tally's possible closure amid financial challenges and a broader downturn in the tech sector.
