Cushion: The Fintech Dream That Couldn't Fly - What Went Wrong?

Cushion's Journey Comes to an End

Cushion, a fintech startup likened to the “Plaid for buy now, pay later (BNPL)”, has officially shut down after 8 years of operation. On Thursday, founder and CEO Paul Kesserwani announced the decision to wind down the company at the end of 2024 via a LinkedIn post.

Despite introducing several new fintech products, Kesserwani admitted that Cushion didn’t achieve the scale necessary to sustain the business. Established in late 2016 in San Francisco, Cushion successfully raised a total of $21.6 million from notable investors like Afore Capital, Flourish Ventures, and 500 Global. Its last funding round was a $12 million Series A in May 2022, which gave the company a post-money valuation of $82.4 million.

Cushion's primary service was a consumer app that analyzed users' bank transaction histories, identified fees, and negotiated refunds on their behalf. Kesserwani was inspired to create Cushion after observing his parents struggle with banking fees while traveling.

In his farewell message, Kesserwani shared that Cushion achieved $3 million in Annual Recurring Revenue (ARR) in just 10 months and onboarded over 1 million consumers, including more than 200,000 paying customers. He expressed pride in the impact Cushion had on the industry, despite the disappointing outcome.

Data suggests that 2025 may be another challenging year for startups, as seen with the recent shutdown of another fintech company, Bench, which closed abruptly only to be acquired shortly after.

About the Author

Mary Ann Azevedo is a seasoned business reporter with over 20 years of experience. She has contributed to various prestigious publications and has won multiple awards for her work.

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