On 4 January 2023 the fintech Ruuky, formerly Pockid, had to file for the opening of insolvency proceedings, according to Business Insider. As stated by a Ruuky representative, the neobank has not been able to raise new capital in the current market environment. Ruuky currently employs around 20 people.
The fintech started in 2020 as a neobank for teenagers, and financiers such as Cavalry and Vorwerk Ventures had invested a total of around EUR 4 million. The valuation for the financing round was around EUR 16 million, as can be seen from the commercial register. A year after its launch, Pockid had changed course and rebranded itself to Ruuky. Since then, it has increasingly focused on young adults with “social interactive banking”. In doing so, the neobank aimed to keep its customers longer, instead of focusing purely on teenage users.
They had so far recorded 250,000 app registrations, and the average age of Ruuky users is 16 years. According to a Ruuky representative, the neobank’s customer growth and its relevance in social networks show that there is a need for a modern, secure and educational banking approach for young people. Nevertheless, the representative stated that they have to accept that the market conditions for capital-intensive startups have changed.
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