Australian Fintech Upstreet Shuts Down After Four Years

Upstreet, a fintech based in Australia, has shut down its operations just 17 months after securing $3 million from investors. The fintech rewards shoppers with fractional shares whenever they buy everyday items.

The co-founders of Upstreet, Christian Eckleman, and Sabine Tejerina, regretted the decision to shut down the company, saying that it was a “difficult decision.” The two further noted that Upstreet had been operational for four years.

The startup has enjoyed much support since its launch. Antler, Black Nova Group and Spring Capital supported its public launch. It came into existence through the Antler venture capital accelerator program.

The Upstreet app allows shoppers to obtain fractional shares in the company they purchase items from. The shares awarded to shoppers are equivalent to a percentage of their transaction value.

Shoppers seeking these rewards use the app and the Google Chrome extension. Upstreet has partnered with more than 600 brands for this offering.

Closure After Recent Funding Round

Upstreet is closing operations 17 months after its latest funding round. The funding round was led by the founder of Wattle Hill Capital, Albert Tse, also the owner of Capilano Honey.

The other investors in the funding round include Kelly+Partners Investment Office and partners from McKinsey & Co. The CEO of Mad Paws, Justis Hammer, and Omnilab’s Media executive, Christopher Mapp, also participated.

Upstreet also boasted of a massive presence across Australia. The fintech has over 300 Australian and global brands working with the platform. The supported companies include ASX-listed ones like Baby Bunting, Kogan, and Myer.

The fintech also rolled out an employee-ownership product to support the transfer of fractional shares between companies and staff. Upstreet’s back end is powered by an investment administrator called Cache Invest, which also supports fractional shares.

Several Fintechs Shut Down This Year

A KPMG report highlighted the declining funding into fintechs. Reduced funding and an uncertain business environment have resulted in several fintechs shutting down.

Earlier this year, fintech startup TenureX shut down its operations. The company attributed the closure to struggles securing new investments, continuous layoffs, macro environment changes, and investor risk appetite. TenureX is a startup that streamlined banking relationships and sought to democratize correspondent banking.

In August, Frontend, a fintech that helped renters finance rental deposits, also shut down. The fintech launched in February 2021. Over the last four years, it secured over £20 million in debt and equity funding from investors such as Fasanara Capital, Passion Capital, TrueSight Ventures, and The Future Fund.

While some fintechs are shutting down because of a lack of funding, others attribute their woes to regulatory scrutiny.

For instance, crypto fintech firm Unbanked, dealing in crypto custody and payment services, halted operations because of a harsh regulatory climate in the US. The co-founders of the fintech firm said that their expectations in the US market were not met after being operational for five years.