Arjun Thyagarajan and Raghav Lal, the co-founders of fintech startup Solid, are pushing back on Series B investor FTV Capital, which filed a lawsuit against the company to get its $61 million investment back.Solid offers companies a way to provide their own financial products, for example, banking, payments and cards. At the time private equity firm FTV invested in 2022, Solid was also offering cryptocurrency products.FTV Capital’s suit, filed in the Delaware Court of Chancery and made public on October 2, claims, among other things, that Thyagarajan and Lal “lied to FTV concerning the company’s revenues, customer churn, and business generally and further deceived FTV.”The private equity firm also claimed that both co-founders not only attempted to hide what they were doing, but also sent a cease and desist letter to their head of finance, who FTV said was sharing information with the firm. The firm also asked for Thyagarajan and Lal to resign.FTV Capital did not respond to repeated efforts for comment.Thyagarajan and Lal declined to resign and instead filed a countersuit on October 9 against FTV and its partner Robert Anderson. In it, they describe FTV as “an aggressive private equity firm,” and claim that “the moment its investment was no longer profitable, [the firm was] resorting to made-up claims of fraud, threats and strong-armed tactics to try to get its money back.”In an interview with TechCrunch, Thyagarajan and Lal say they opened Solid’s books for FTV to perform due diligence, which the private equity firm did for about two months. They admit that FTV came back saying that Solid had softer revenue and higher churn than it originally thought. However, the firm used that to renegotiate the terms of the investment, to which the co-founders agreed.According to Thyagarajan and Lal, the relationship began breaking down in November 2022 when the “crypto winter” was in full effect

FinTech-as-a-Service firm Solid Financial is being accused of falsifying its revenue numbers to woo investors. . A lengthy report published Monday (Sept. 18) by FinTech Business Weekly said the company appears to have undertaken a scheme to inflate its booked revenue to present a positive impression for potential backers, including data used in a Series B funding round. . PYMNTS has contacted Solid for comment but has not yet received a reply

Banking-as-a-Service infrastructure provider Solid has partnered with Lewis Clark Bank to improve its onboarding and monitoring process of fintech clients.Through this partnership, Solid aims to accelerate and strengthen its processes, in conformity with Lewis Clark Bank’s risk and compliance standards. The collaboration enables fintechs to integrate with Solid’s infrastructure to embed financial services, including banking, payments, and card issuance, according to the bank’s compliance framework. As per officials’ statements, Solid aims to provide a modern fintech infrastructure by seamlessly merging technology and compliance and offering banks a deeper understanding of fintechs. By partnering with Lewis Clark Bank, the company wants to help fintechs in building and launching, as well as scaling their businesses. . Banking-as-a-Service sector