Carax is shutting its doors in October.
The company said it would be taking a “structural” $50 million write-down.
In a blog post, CEO Joe DiVincenzo said the company was shutting down its flagship app and removing a significant amount of data from its platform.
He added that Carax would no longer allow users to buy products with the company’s “gold card,” which allows people to buy car insurance, auto loans and much more.
Carax had over $1.3 billion in revenues in the third quarter, according to its most recent filings.
It has had a rocky time since it was acquired by Caravac in 2014.
DiVancenzo wrote that the company is still a “leading leader in the marketplace of financial technology,” adding that the new focus will “focus on the intersection of consumer finance and technology.”
DiVaughn says he has received positive feedback from customers on Carax, and hopes to continue working with them.
The former CFO also told the Wall Street Journal that the move would allow Carax to focus more on its core business, which includes financial products, mobile banking, insurance and financial engineering.