
Cushion: A Lesson in the Unpredictability of Fintech
The fintech landscape continues to evolve, but few stories resonate as acutely as that of Cushion, which announced its shutdown after eight years and raising over $20 million in funding. Positioned as a promising startup akin to 'Plaid for buy now, pay later,' Cushion exemplifies the volatile nature of the tech industry. Founded in 2016 by Paul Kesserwani, the company sought to bring automation to bank fee negotiation, allowing users to recover fees they might not even be aware they were paying.
A Promising Start Amid Growing Challenges
Within just 10 months, Cushion achieved $3 million in annual recurring revenue (ARR) and onboarded over a million consumers. Despite its initial success and strategic market entry, the company struggled to scale adequately, which ultimately led to its demise. Kesserwani noted in a heartfelt LinkedIn post that despite innovative efforts, the company did not reach the chat needed for sustainable operation.
Fintech's Survival: Key Takeaways
The fate of Cushion raises important discussions within the startup ecosystem about sustainability, market needs, and consumer behaviors. It highlights a growing trend where even well-funded startups can falter if they fail to capture the essential scale. With predictions suggesting 2025 could be another challenging year for startups, Cushion serves as a cautionary tale of the hurdles facing emerging fintechs.
Reflections on the Journey
Kesserwani expressed pride in the company’s contributions, emphasizing that although the outcome fell short of their aspirations, Cushion made its mark on the fintech landscape. As he reflects on future opportunities, it is a reminder for entrepreneurs about resilience and adaptability. The end of Cushion’s journey might just be the beginning for its founder as he explores new ventures in the wider tech ecosystem.
Write A Comment