The Rise and Fall of a Fintech Unicorn

Cushion, the fintech startup that once promised to revolutionize the buy now, pay later (BNPL) space, has officially shut its doors. After 8 years of grinding, over $20 million in funding, and a valuation that peaked at $82.4 million, the dream is over. Founder and CEO Paul Kesserwani announced the decision to wind down the company in a heartfelt LinkedIn post, marking the end of an era for the San Francisco-based innovator.

“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.”

Paul Kesserwani, Founder & CEO of Cushion

What Was Cushion?

Cushion wasn’t just another fintech startup. It was a game-changer. Dubbed the “Plaid for BNPL,” Cushion offered a consumer app that:

• Analyzed transaction histories from users’ bank accounts
• Identified hidden fees and charges
• Automated negotiations to get refunds on behalf of users

And here’s the kicker: Cushion only made money when its users did. The company took a commission on any refunds it secured, aligning its incentives perfectly with its customers. Genius, right?

The Spark That Lit the Fire

Kesserwani’s inspiration for Cushion came from a personal pain point. After leaving Twitter, he took a break to figure out his next move. During this time, he helped his parents manage their bank accounts while they were traveling in Lebanon. Due to strict bank security policies, they couldn’t access their accounts remotely, leading to a mountain of fees. When Kesserwani dug into his own accounts, he discovered he’d been hit with $400 in fees he never agreed to. That’s when the lightbulb went off.

The Numbers Don’t Lie

Cushion wasn’t just a good idea — it was a proven concept. Here’s what the company achieved:

• $3M ARR in 10 months: A meteoric rise in revenue
• $300M+ in BNPL loans processed: A testament to its impact
• 1M+ consumers onboarded: With over 200,000 paying customers

But despite these wins, Cushion couldn’t scale fast enough to sustain the business. The harsh reality of the startup world struck hard.

2025: A Brutal Year for Startups

Cushion’s shutdown is part of a larger trend. 2025 is shaping up to be a bloodbath for startups, especially in fintech. Just last December, another fintech giant, Bench, shut down abruptly — only to be acquired days later. The message is clear: even the brightest stars can burn out.

What’s Next for Kesserwani?

In his LinkedIn post, Kesserwani expressed pride in what Cushion accomplished and excitement for the future. While the journey didn’t end as planned, he leaves behind a legacy of innovation and a blueprint for others to build upon.

“As for me, I’m excited for what’s next.”

Paul Kesserwani

Final Thoughts

Cushion’s story is a reminder that even the most promising startups face insurmountable challenges. But it’s also a testament to the power of innovation and perseverance. While the company may be gone, its impact on the fintech industry will linger for years to come.

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