Pillow, a Singapore-headquartered crypto investment startup, has finalized its plans to stop its services. By next month, the company will cease all of its ongoing operations.
Amid regulatory challenges in the ever-evolving crypto landscape, the Accel-backed firm has now the reasons to leave the competition.
Before this announcement was made, Pillow managed to raise $18 million as part of its Series A funding.
Pillow Is Exiting the Crypto Market Soon
Pillow informed its users through a message that it deeply regrets discontinuing its services through the Pillow app.
According to TechCrunch, the company noticed that it's growing incapable of serving its customers due to hurdles in the competition.
Because of this, users should expect that their investment in Pillow will no longer grow, thus, the app's reward section will soon be removed.
By August 7, 2023, Pillow said that the consolidated statement for the transactions would be distributed through its official app. Until July 31, users will still have the opportunity to make cryptocurrency withdrawals, while bank withdrawals will be available until July 7.
Before Pillow's Discontinuity Phase
Founded in 2021 by Arindam Roy, Rajath KM, and Kartik Mishra, Pillow has successfully attracted a user base of over 75,000 individuals across more than 60 countries. The Pillow app allowed users to invest and save in stablecoins backed by the US dollar, as well as popular cryptocurrencies such as Bitcoin and Ethereum.
Pillow had raised a significant amount of $18 million in a Series A funding round in October 2022. This funding round was co-led by prominent investors, including Accel, Quona Capital, Jump Capital, and existing investor Elevation Capital.
Additionally, the company had previously received $3 million in a seed round led by Elevation Capital in February 2022, per Money Control.
The closure of Pillow has also reached Africa, where a local publication reported that the company would also cease operations in Ghana and Nigeria. The startup penetrated the African markets after only a single year.
Likewise, the trend also hit the Indian DeFi app Flint back in January. At that time, it announced that its services would no longer be available this year anymore, citing regulatory issues.
With the continuous evolution of business markets all over the world, companies need to adapt to the changes that are happening.
In the crypto industry, it's important that the operations need to be optimized and consistent at all times. With this, the companies can be flexible in their decisions as they face the regulations fair and square.
In other news, Sony says that it's currently negotiating with Warner Bros. to purchase half of Discovery's assets, amounting to $500 million. The firm was made possible through a Discovery Inc. and Warner Media merger. If this pushes through, Sony could attract more buyers who might want to buy its services in the future.
