German neobank Ruuky files for insolvency after failing to raise funding

Ruuky, a Hamburg-based neobank aimed at teenagers, has filed for insolvency after struggling to raise the capital it needed to continue.

In a post on LinkedIn the company wrote: “We are living in challenging times, and despite our best efforts, we were unable to overcome the market dynamics to raise additional funding.”

“This decision to file for insolvency was not taken lightly and breaks our hearts.”

Ruuky previously raised €4m from Cavalry Venture and Vorwerk Ventures, and reached a valuation of €16m.

The fintech doesn’t have a banking licence and works in partnership with UK e-money institution PPS, which is licenced by the National Bank of Belgium, in order to offer its IBAN accounts.

CEO and co-founder Jes Henning added on LinkedIn that the company continues to explore its options, writing: “We keep the daily business running and we remain committed to finding a way forward and exploring every possible option to keep the dream of Ruuky alive.”

All customer funds are secure, with users still able to access their funds and use the app while the firm goes through the insolvency process.

Ruuky is just the latest German neobank to run out of runway, after Nuri announced in August 2022 that it had also filed for insolvency.

Nuri however had focused heavily on the crypto space, offering a crypto wallet as well as a Euro account, leaving it exposed during the crypto winter as prices tumbled.

In the UK we also saw Bank North enter administration in October 2022, prompted by its failure to raise further funding.