German neobank Ruuky has filed for insolvency after failing to raise fresh funds.
Launched three years ago under the brand name Pockid, the firm pivoted a year later under the new name Ruuky, offering an interactive banking app, current account and debit card for European teenagers.
While the business claims to have amassed a loyal customer base, counting 250,000 app registrations, it has fallen victim to an ongoing drought in VC funding.
“We are living in challenging times, and despite our best efforts, we were unable to overcome the market dynamics to raise additional funding,” says the firm. “This decision to file for insolvency was not taken lightly and breaks our hearts.”
The startup had previously raised €4 million from Cavalry Venture and Vorwerk Ventures at a valuation of €16 million.
Ruuky, which employs 28 people, is now looking for a buyer for the business and will keep accounts open as it winds down.
[Source Finextra]