Embattled German fintech Solaris might be having difficulties with raising funds for one of its major European clients.
This was reported by the Financial Times, with the media agency citing insider information that Munich-based motor association ADAC is looking into new credit card associates after Solaris fell behind schedule to secure €100mn for a new project.
The two companies currently have a 10-year contract in place that leases the rights to Solaris for the issuing of ADAC-branded credit cards.
However, as the global economic landscape worsens, startups like Solaris have found it increasingly difficult to attract more funds from reluctant investors.
The current financial state of Solaris is also being brought forward. According to The Times, the fintech firm has managed to raise a total of €440mn since its founding back in 2015, but it also lost €56mn in revenue (43% of total) heading out of 2022.
Solaris largely focuses on increasing payment options through APIs, however, this latest news will be seen as a significant setback for the growing fintech.
In a recent piece for Payment Expert, the firm’s Chief Information Officer also discussed how they are eyeing generative AI as a future opportunity specifically when it comes to maximising available data.