Cushion, a fintech startup known as the "Plaid for buy now, pay later," has announced its closure at the end of 2024. Founded in late 2016 and based in San Francisco, the startup raised $21.6 million but failed to achieve the scale needed to sustain its operations. Cushion specialized in automating bank fee negotiations for consumers, achieving $3 million in annual recurring revenue (ARR) in just 10 months. Founder Paul Kesserwani cited the inability to reach a critical scale as the primary reason for winding down, despite their innovative offerings and substantial processing volume.
Cushion, despite launching innovative fintech products, has ceased operations as it couldn't reach the scaling required for sustainability, as stated by CEO Paul Kesserwani.
In his LinkedIn post, Kesserwani emphasized that they did not attain the necessary scale for their business after bringing multiple fintech products to market.
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