American banking startup GloriFi has announced plans to wind up its operations after failing to raise additional funding.
The fintech firm, which is backed by billionaire entrepreneur and venture capitalist Peter Thiel, made its debut two months back.
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GloriFi marketed itself as an “anti-woke” alternative for “pro-freedom” Americans.
GloriFi in its press statement said it is shuttering operations because it “experienced a series of financial challenges related to startup mistakes, reputation attacks, the declining economy, and multiple negative media stories.”
The banking startup has laid off most of its employees.
“We couldn’t be more thankful for our employees’ tireless efforts to bring this amazing product to market and our members and clients’ early trust, nor could we be more disappointed in the ultimate outcome,” the company’s statement read.
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By GlobalDataThe company’s app allowed customers open checking and savings accounts and apply for credit cards.
The fintech company missed multiple launch dates and pinned the blame on blaming faulty technology and failures by vendors.
Last year, GloriFi raised an investment of approximately $50m from an A-list group of investors, according to The Wall Street Journal. In July, the company brokered a merger deal with special-purpose acquisition company DHC Acquisition, which gave the company a valuation of nearly $1.7bn. The deal required the banking startup to raise at least $60m in additional cash.
