Solid Financial Technologies, also known as Wise Company, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
The California-based fintech, which offers infrastructure for digital banking and payment processing, submitted its petition on Monday, listing both assets and liabilities in the $1 million to $10 million range.
The bankruptcy marks yet another blow to the increasingly fragile Banking-as-a-Service (BaaS) ecosystem. Once hailed as a promising enabler of embedded finance, Solid has joined a growing list of platforms struggling with regulatory scrutiny, partner bank instability, and mounting financial pressures.
Solid’s creditor list includes major financial and technology firms such as Visa, Plaid, and Amazon Web Services—the latter holding the largest unsecured claim at roughly $143,000. Womble Bond Dickinson (US) is representing the company in bankruptcy proceedings.
Founded in 2018, Solid raised $80.7 million in venture funding. But its trajectory was marred by internal and external controversy. A lawsuit from Series B lead investor FTV Capital accused the fintech of manipulating revenue figures while raising funds. Though the case was ultimately settled with Solid repurchasing FTV’s stake at a steep 56% discount, it raised questions about governance and financial transparency at the company.
Solid’s banking relationships have also been a point of turbulence. It is currently partnered with Lewis & Clark Bank, which is reportedly planning to exit the BaaS space. Solid once worked with Evolve Bank & Trust, a partnership that ended amid mounting scrutiny of Evolve’s compliance shortcomings. Solid and Evolve are now facing litigation over their business practices, further straining the fintech’s credibility.
Financial disclosures filed as part of the bankruptcy process offer a clearer look at Solid’s position. As of Feb. 28, it reported about $9.6 million in cash across accounts at Brex, Evolve, First Republic, Lewis & Clark, and other institutions—including an overdrawn account at Wells Fargo. Additional current assets totaled around $638,000.
Against that, the company listed more than $4.1 million in current liabilities, including accounts payable, accrued payroll, and customer reserves—highlighting a strained balance sheet with limited flexibility.
Solid’s 2023 tax return shows it generated about $4.5 million in gross sales but posted a net loss of $12.7 million. The firm has 69 shareholders, 25 holders of options or restricted stock units, and 131 former shareholders. A 2023 report of Foreign Bank and Financial Accounts indicates that Solid held bank accounts in India at Axis Bank and IDFC First Bank.
Despite the bankruptcy, it appears that some programs powered by Solid remain operational. A profit-and-loss statement filed with the court includes revenue from platform fees, interchange, and customer deposit-related interest from partner banks.
Solid’s unraveling underscores the mounting challenges facing BaaS providers, particularly those reliant on a limited number of banking partners or vulnerable to compliance risks. The bankruptcy not only exposes the fragility of some fintech infrastructure players, but also serves as a cautionary tale for investors and clients navigating this rapidly evolving space.