German neobank Ruuky files for insolvency

German neobank Ruuky files for insolvency

German neobank Ruuky has filed for insolvency, after it was unable to overcome market dynamics and raise additional funding.

Announcing the news via LinkedIn, it said, “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.”

The neobank, which was founded in 2020, was built to help improve the financial lives of Gen Z. It stated that over the past year, it witnessed strong growth, even becoming the largest neobank on social media in Europe.

It ended its message with, “We want to thank everyone who is a part of our journey or supports us from the sideline. Every obstacle is an opportunity. We keep fighting and stay resilient as our vision “to enable the young generation to become financially independent” is not fulfilled yet.”

Customer funds are secured and its apps are still fully accessible.

Ruuky offers a checking account for young adults, with no account management fees, simplified management tools and no overdraft. It also offered a Debit Mastercard and the ability for parents to have an overview of the account.

The platform launched a new app in September 2022, as well as launched its services in Austria.

Last year, fellow German neobank Penta was acquired by European business finance solution Qonto.

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