Cushion, a fintech startup founded in late 2016 in San Francisco, has shut down after an eight-year operation. Known for its innovative approach to automated bank fee negotiation and buy now, pay later (BNPL) services, the company had accumulated over $21.6 million in funding from notable investors, including Afore Capital, Flourish Ventures, Vesigo Ventures, Better Tomorrow Ventures, and 500 Global. Despite its promising start and a valuation of $82.4 million in 2022, Cushion's journey concluded at the end of 2024 due to its inability to achieve sustainable business scale.
Cushion's last significant funding round occurred in May 2022 when it secured $12 million in a Series A round led by Afore Capital. The company had successfully onboarded over one million consumers, with more than 200,000 paying customers. It was designed to align incentives with consumers by taking a commission only on returned cash, a model that resonated with many users. In just ten months, Cushion reached an impressive $3 million annual recurring revenue (ARR), processing over $300 million in BNPL loans.
Founder and CEO Paul Kesserwani left his position at Twitter to pursue his vision for Cushion. Inspired by personal experiences of handling unexpected banking fees while assisting his parents during their work travels in Lebanon, Kesserwani identified a significant gap in consumer financial services. His parents faced challenges logging into their bank accounts due to security policies and accumulated numerous banking fees. This experience led Kesserwani to realize he had also unknowingly paid $400 in fees, sparking the idea for Cushion.
"I gave Cushion everything I had for 8+ years. While the outcome wasn’t what we hoped for, we built something that moved the industry forward — and I’m proud of that. As for me, I’m excited for what’s next.” – Paul Kesserwani
"Despite bringing multiple new fintech products to market,” Cushion “didn’t reach the scale needed to sustain the business.” – Paul Kesserwani
Cushion was often described as the "Plaid for buy now, pay later (BNPL)" due to its pioneering efforts in simplifying and automating financial processes for consumers. However, despite its innovations and market presence, the company could not maintain the growth required to continue operations.
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