German neo-bank Ruuky filed for bankruptcy after a failed round of financing.
Ruuky, which had previously been known as Pockid, was founded in 2020 as a neo-bank aimed at 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 neo-bank aimed to keep its customers longer, instead of focusing purely on teenage users.
The company rebranded as Ruuky and began targeting young adults with their “social interactive banking” services with the aid of Ruuky’s banking partner, the electronic money institution, PPS EU.
Despite recording 250,000 app registrations and having an average user age of 16, Ruuky was unable to raise new capital in the current market environment.
A representative for the company stated that “the market conditions for capital-intensive startups have changed.”
The Way Forward
In the coming weeks, Ruuky will focus on finding a potential buyer. Bankruptcy will not affect customer deposits, and access to the app will continue without restrictions.
However, new registrations will no longer be possible.
New Age Banking
Ruuky offered a free checking account and accompanying card to its young adult customers, with no monthly or annual fees.
The account allowed users to pay worldwide online and offline, request and send money in real-time between Ruuky customers, and make international bank transfers within the SEPA area.
The Ruuky Debit Mastercard could also be added to users’ Apple Wallet for payment with an iPhone or Apple Watch.
While young adults over the age of 18 could open an account independently, parents and guardians could also open accounts for their children under the legal age.