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Neobank Ruuky files for bankruptcy 

Monday 9 January 2023 15:33 CET | News

Germany-based neobank Ruuky has filed for bankruptcy because of a failed round of financing.

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.

 

Ruuky’s aim

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.

 

The neobank’s growth so far

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.

Germany-based neobank Ruuky has filed for bankruptcy because of a failed round of financing.

Next steps for Ruuky

In the coming weeks, the focus will be on finding a potential buyer. Customer deposits are not affected by the insolvency and access to the banking app continues to be available without restrictions. However, new registrations are no longer possible. The banking partner of Ruuky is the electronic money institution PPS EU.

The offer

Ruuky offered its users a checking account targeted at young adults. Both the Ruuky account, as well as the card that accompanies it, is free and there are no monthly or annual fees. With this account, it is possible to pay worldwide online and offline, request and send money between Ruuky customers in real-time, and make international bank transfers in the SEPA area.

Additionally, the Ruuky Debit Mastercard could be added to users’ Apple Wallet in order to pay with an iPhone or Apple Watch. Young adults above the age of 18 were able to open an account independently. However, it was also possible for parents and guardians to open an account for their children who were still not of legal age.

Source: Link


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Keywords: mobile banking, banking, neobanks, fintech, money transfer
Categories: Banking & Fintech
Companies: Ruuky
Countries: Germany
This article is part of category

Banking & Fintech

Ruuky

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