Hamburg-based banking app Ruuky, also known as pockid, began insolvency proceedings last week. The three-year-old neobank was designed to target Gen Z customers with its “social interactive” features.
The company’s co-founder and CEO Jes Henning explains, “We have not been able to raise new capital in the current market environment. This makes us incredibly sad as we had a great 2022. Our customer growth and our relevance on Gen Z channels show that there is a need for a modern, safe, and educational approach to banking for young people. Nevertheless, we have to accept that the market conditions for capital-intensive startups have changed."
According to the company, they’ve suspended the opening of new accounts and informed customers of the proceedings. Active deposits are not affected by the move, with access to the banking app remaining available and unrestricted.
The insolvency proceedings are designed to preserve the jobs of the 20-member Ruuky team as the company continues to seek funding. For how long remains to be seen.
“For two-thirds of our customers, Ruuky is their first bank account, and our team is very proud of this trust. Since 2020, Ruuky has evolved together with our community and positioned itself as a first mover. Our organic growth as well as our watch time on social media demonstrates the extraordinary performance of our entire Ruuky team over the last few years,” added Ruuky co-founder and CMO Max Schwarz.
At the time, Cavalry Ventures' Martin Janicki commented, "The pockid team understands and speaks the language of Gen Z like no other provider on the market. Pockid has a clear vision to deliver real value to its users that goes far beyond the typical bank account."