SF tech company Tally, once worth $855 million - Lot more winding down

[Chittoorodu]

 Manchi idea, kani very bad execution - Interviewed here couple of years ago - Good pay but did not materialize,  Ipudu manchi kaalam anipistundi. 😰 

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Tally, a San Francisco startup that gathered elite Silicon Valley investors behind its product for managing credit card debt, is shutting down.

Co-founder and CEO Jason Brown announced the news in a Monday post to LinkedIn. Calling the move a “difficult and sad decision,” he said the company was unable to raise enough cash to continue operating. The same day, employees were already trickling onto LinkedIn with “#OpenToWork” posts.

According to Crunchbase, Tally raised $172 million in funding during its nine-year run, pulling cash from Andreessen Horowitz, Sway Ventures and other prominent venture capital firms. Its most recent round, which raised $80 million in October 2022, tripled the company’s valuation to $855 million, per a Bloomberg report.

Sway partner Ken Denman told Bloomberg at the time that his firm was confident in the company’s “strong metrics and performance,” prompting it to invest despite a difficult moment in financial markets. But since then, fundraising for tech startups has gotten even tougher; higher interest rates make such investments less appealing, and financial tech companies looking to borrow cash face tough payment plans.

The signs of Tally's struggle began earlier this year. In April, the company announced that it was eliminating its direct-to-consumer business in favor of a business-focused offering, but as TechCrunch reported, Tally never followed up on its promise that it had a large launch partner.

Tally also faced a wave of customer complaints. Dozens of people have reported the company to the Better Business Bureau since March, with many of the comments saying that Tally suddenly stopped delivering promised payments to the customers’ credit cards and raised interest rates on their credit lines. Several mentioned that a class-action lawsuit might be coming; a few called Tally “predatory.”

Source -https://www.sfgate.com/tech/article/tally-shuts-down-amid-complaints-19654615.php

[kevinUsa]

edi kuda oka erp ee kad a

 

[Tellugodu]

7 minutes ago, kevinUsa said:

edi kuda oka erp ee kad a

 

He is talking about tech start up from SF. Not this Tally, based in India, which is an accounting ERP

https://en.m.wikipedia.org/wiki/Tally_Solutions

[Chittoorodu]

8 minutes ago, kevinUsa said:

edi kuda oka erp ee kad a

 

Idhi SF based Tally - They were aiming to hit unicorn status in the heights of pandemic.

Simple ga unna multiple CC debts and personal loans anniti ni consolidate chesi single lower interest loan istharu

[yogdenon]

It’s unfortunate to see another promising startup like Tally facing such challenges. Despite its strong backing and impressive funding rounds, the changing landscape of tech funding, especially in the wake of higher interest rates, has made it tough for even the most well-funded companies to continue.

If you’re interested in learning more about company structuring or seeking alternatives in situations like this, it might be worth checking out https://delaware.houseofcompanies.io/, which provides useful insights for businesses going through transitions, helping with incorporation and managing corporate needs.