A number of things happened, but really kicking off with legal problems - specifically, the CFPB and California DBO cases.
The credit card side of the business was spun off into a new vehicle ("Mission Lane") and raised fresh capital from some of the same investors; LendUp itself has announced any new capital raises -- kind of suggests that investors viewed the credit card part as the more likely to succeed chunk of the business.
Around the time of the spinoff, you also saw founding team leave. Some talent went to the new credit card biz, others left altogether.
Meanwhile, the subprime lending world shifted and LendUp failed to respond -- from "neobanks" like Chime and Varo (which offer up to $100) to earned wage access like PayActiv, DailyPay, etc. -- borrower options changed, and LendUp didn't respond to those changes effectively.
In its own category, other companies executed more effectively (eg, OppLoans).
I view the LendUp story as a cautionary tale of good idea, fast growth, but ultimately faltering on execution.
