LendingClub and Pagaya acquire intellectual property of shuttered fintech Tally
LendingClub Corporation, a California-based digital lending platform, has teamed up with US-Israeli fintech Pagaya Technologies to acquire the intellectual property (IP) of defunct fintech Tally Technologies for an undisclosed sum.
Tally ceased its operations in August 2024
Tally, which developed an embedded, white-label credit card debt management platform, ceased operations in August 2024, leading to the availability of its assets for acquisition.
Founded in 2015, Tally cited its inability to secure the necessary funding as the primary reason for its shutdown, despite securing $80 million in a funding round in 2022.
The company, which claimed to have given rise the first automated debt management tool for credit cards and interest payments, employed 183 people when it closed.
Pagaya, specialising in AI-driven consumer credit and real estate solutions, plans to integrate Tally’s product into its white-label B2B suite, aiming to boost its credit management capabilities.
The purchase of Tally’s IP adds to Pagaya’s undisclosed sum deal for institutional asset manager Theorem Technology in August.
Meanwhile, LendingClub, which looks to help individuals reduce and accelerate repayment of their debt, intends to utilise Tally’s IP to advance its member engagement platform.
LendingClub CEO Scott Sanborn indicated that, in addition to acquiring Tally’s credit card management platform, the company has also welcomed a “few select former Tally employees” to its team.
This follows the digital lender’s January 2023 announcement of laying off 225 workers. The company attributed the decision to reduced loan demand caused by recent interest rate hikes.
