Founded in late 2016 by Paul Kesserwani, Cushion’s flagship app allowed users to link their bank accounts, identify fees, and negotiate refunds automatically. The platform followed an incentive-aligned model, taking a commission only when users successfully received a refund.

In its early days, Cushion saw rapid success, reaching a $3 million annual recurring revenue (ARR) within just 10 months and processing over $300 million in Buy Now, Pay Later (BNPL) loans. At its peak, Cushion onboarded more than 1 million consumers, with 200,000 paying customers. Its last funding round occurred in May 2022, when the company raised $12 million in a Series A round, bringing its valuation to $82.4 million.

Despite its early promise, Cushion struggled to maintain the growth necessary to continue operating. In a LinkedIn post, Kesserwani shared the news of the shutdown, expressing pride in the company’s impact on the industry and acknowledging the challenges it faced in scaling. He added that he was excited about his next venture.

The closure of Cushion highlights the tough road ahead for many fintech startups, especially with predictions for 2025 indicating a challenging year for the sector. Cushion’s journey exemplifies the hurdles even well-funded and promising startups face in securing long-term success.