Solaris, a leading Banking-as-a-Service (BaaS) provider, faces significant financial challenges while attempting to fulfill its €100 million contract with ADAC, a German motor association. The fintech posted €56 million in losses for 2022 and is now seeking additional funding after a €38 million round in July 2023. To address its financial strain, Solaris is considering partnerships and scaling down operations, including workforce reductions. The firm’s challenges stem from increasing regulatory requirements, the need to meet ADAC’s large-scale credit card issuance demands, and an uncertain fundraising environment.

Key Points:

1. Major Contract Challenges: ADAC credit card issuance project requires €100 million in funding.
2. Financial Issues: Posted €56M loss in 2022, with €38M raised in July 2023 proving insufficient.
3. Operational Adjustments: Workforce cuts and a strategic review are underway to stabilize operations.
4. Potential Partnerships: ADAC exploring collaborations to reduce Solaris’ financial burden.
5. Uncertain Funding: Negotiations with key backers like Visa and BBVA are ongoing

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