Insurer-backed Tally shuts down

San Francisco-based Tally has shut down.

In a LinkedIn post shared on Monday, founder and CEO Jason Brown announced that after nearly nine years of helping people manage and pay off their credit card debt, Tally has made the difficult decision to close its doors. Despite extensive efforts, the company was unable to secure the necessary funding to continue operations.

Tally was founded with a mission to alleviate the burden of credit card debt, inspired by Brown’s personal experiences with the stress and anxiety debt can cause. Over the years, Tally evolved into a financial coach for its users, automating payments and fostering healthier financial habits. The company assisted individuals in managing and paying off billions of dollars in debt, empowering them to regain control of their financial futures.

Founded in 2015, Tally raised $172 million from several investors, including Andreessen Horowitz, Cowboy Ventures, Flucas Ventures, Kleiner Perkins, Shasta Ventures, Sway Ventures, and Israeli insurer Menora Mivtachim .

In July, an “honest review” posted on Glassdoor highlighted that Tally was once a great place to kickstart a career and grow in multiple ways. However, the review pointed out that insurmountable tech debt, poor execution, and leadership challenges had diminished the company’s former glory. The review also mentioned that during the height of COVID-19, Tally over-hired and has since undergone several rounds of layoffs (RIFs) over the past two years. The reviewer indicated that their role was affected by a 40% RIF and suggested that the Series D startup was facing potential closure with little to no runway left. According to the review, Tally was attempting to sell the company in a last-ditch effort to survive and cover current employee severances, though success seemed unlikely given the challenging market conditions.