German neobank Nuri has filed for insolvency due to “significant macroeconomic headwinds and the cooling down of public and private capital markets” putting a strain on the firm’s liquidity.
Citing the effect of “challenging market developments” on Nuri’s business, the bank says filing for insolvency was “necessary to ensure the safest path forward for all our customers”.
The Berlin-based neobank said in a statement on its website that the action does not affect its services, customer funds or investments. The firm adds: “All funds in your Nuri accounts are safe due to our partnership with Solarisbank AG.”
“You have guaranteed access and will be able to deposit and withdraw all funds freely at any time.”
In May, the firm laid off 45 employees. CEO Kristina Walcker-Mayer referred to “massive” corrections in tech and fintech valuations, the interest rate turnaround in the US and rapidly rising inflation as reasons for the layoffs.
Nuri says 2022 has been challenging for the wider start-up ecosystem, “especially for fintechs”.
The aftershocks of the Covid-19 pandemic, Russia’s invasion of Ukraine, the cooling off of public and private capital markets, as well as unfavourable developments in the crypto space such as the insolvency of Celsius, have all strained the liquidity of the business.
However, the neobank adds it is “confident that the temporary insolvency proceedings offer the best basis for developing a viable long-term restructuring concept”.
Image and article originally from www.fintechfutures.com. Read the original article here.