According to reports, GloriFi, a Texas venture that marketed itself as a right-wing alternative to “progressive” Wall Street giants, is shutting down.
Virtual Bank Shutting Down
The fintech firm GloriFi has declared its closure. The decision was made after it was unable to get extra money.
In September of this year, GloriFi launched its virtual doors with the intention of delivering digital banking solutions through its app.
Although the business raised $50 million previously this year, it was unable to get additional finance, leaving it with no viable option to continue operations. As a result, it is closing its doors and dismissing its employees.
Employees Being Fired
The Wall Street Journal claimed on Monday (November 21) that the business has laid off the majority of its employees and told them of its closure, quoting people close to the situation and internal communications.
In a statement to workers, Cathy Landtroop, GloriFi’s Communications Officer and Chief Marketing Officer explained that the firm’s anticipated financing for the first quarter had not come through.
She said that the financial issues associated with startup errors, the weak economy, reputation hits, and repeated bad stories took their toll.
PYMNTS has contacted GloriFi to request a reaction. On Monday, both the firm’s Twitter and Instagram profiles were unreachable.
"Anti-woke" bank GloriFi has laid off most of its employees and told them that it is closing up shop https://t.co/q2rrNY12lA
— Anthony DeRosa (@Anthony) November 21, 2022
In July, GloriFi, which marketed itself to be pro-freedom, pro-America, and pro-capitalism, revealed its intention to go public via a $1.7 billion blank check transaction.
Toby Neugebauer, the chief executive officer of GloriFi, stated at the time, that consumers wish to conduct business with firms who share their beliefs.
He felt that this sector is greatly neglected, and the combination of their unapologetic pro-America principles and what they consider to be the leading technology gives GloriFi a major competitive advantage to dominate this exciting growth sector.
GloriFi, the Texas startup that sought to build a conservative banking alternative, is shutting down https://t.co/cOL1KNJmuI
— The Wall Street Journal (@WSJ) November 21, 2022
Nevertheless, the company had a rocky start, according to a Journal investigation. According to the company, launch deadlines were delayed due to supplier issues and defective technology. Employees claimed that Neugebauer’s purportedly volcanic anger and the unorthodox workstation (the CEO’s home) created a disruptive atmosphere.
Clients may be concerned about the fate of their funds, but as stated in GloriFi’s post, the business has started the process of assisting their clients in resolving their funds without providing any information. Nevertheless, GloriFi advises clients to seek additional information and detailed instructions within the next day.
Job Losses Increasing
The closure of GloriFi coincides with a wave of business layoffs. Carvana, an online platform for purchasing new and used automobiles, announced last week that it would lay off over 1,500 employees, or 8% of its staff.
Meta Platforms has cut 11,000 employees, while Amazon has announced the elimination of 10,000 jobs. As corporate officials are only midway into their yearly operational planning review, Amazon has stated that redundancies will extend into next year.