Online lender Avant acquired ReadyForZero in 2015 to promote debt and credit related financial education.. ReadyForZero is a debt management and credit monitoring platform that helped consumers manage their finances. While no terms of the acquistion were revealed, ReadyForZero had reportedly raised $5 million in a Series A round that included Citi Ventures, YC, Polaris Ventures and others.
In the fall of 2015, ReadyForZero announced updated credit monitoring tools available free of charge.
In an about face, ReadyForZero announced it was shutting down.
In an email sent to registered users, ReadyForZero stated;
We’d like to thank you for being part of the ReadyForZero community. While we will continue to provide you with plenty of informational content, effective November 12, 2016, ReadyForZero will be shutting down its credit score and debt planner tools.
What does this mean for me?
On November 12, 2016, your account will be deactivated and you will no longer be able to log in.
A quick trip to the ReadyForZero Facebook page shows multiple comments from jilted customers.
One post on Facebook is from Ignacio Thayer from the original ReadyForZero team. Thayer explained neither he nor Rod Ebrahimi, former CEO, were affliated with the company;
“Your concern and passion abvout ReadyForZero are evident which is good to see,” said Thayer. “Hopefully ReadyForZero did some good while it was alive.”
Crowdfund Insider emailed Avant for any insight as to why the acquisition was terminated. As of this writing, Avant has chosen not to respond.
One fan of the platform told Crowdfund Insider;
“I think users deserve some answers – I am just one of many, as self-proclaimed statements directly from ReadyForZero indicate that over $350 million in debts were paid down based on the debt tracking tools they developed and maintained on their website. We are all now left in the lurch wondering what to do now, and for those with less financial acumen than myself (my professional background is in corporate finance), I especially feel bad…”
Avant, like many online lenders, has had a challenging year. Perhaps ReadyForZero ended up being more of a cost than it was worth. Of course this is pure speculation and can only be clarified by Avant.