Nuri (Previously Bitwala) Is Closing Down

Berlin-based Nuri (previously Bitwala) is shutting down its business as the digital bank failed to raise funds or find an acquirer. It cited the “tough economical & political environment of the past months” behind the drastic decision.

Nuri is closing down its business operations. We ask our customers to withdraw their funds and assets as of 18.12.2022. Thank you for having been part of the Nuri community! 💜

Here is a letter of our CEO Kristina Walcker-Mayer: https://t.co/gdOOeoOKDs

— Nuri (@NuriBanking) October 18, 2022

Founded in 2015, Nuri raised €42.3 million in funding over the years, as seen on Crunchbase. It closed the last extended Series B funding round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term in mid-2021, raising €9 million.

“On top, the insolvency of one of our main business partners worsened the situation significantly and put us over the edge,” Nuri's CEO, Kristina Walcker-Mayer stated in a blog post published on Wednesday.

Though the CEO did not name its insolvent partner, it is most likely the crypto lender, Celsius Network. The two companies partnered earlier to offer interest on crypto deposits to Nuri customers.

Originally known as Bitwala, the company was established as a crypto exchange and later entered into other digital banking spaces with the rebranding.

Restructuring Failed

The troubles of the company were already known as it filed for insolvency three months following layoffs. However, then Walcker-Mayer was optimistic to find a “viable long-term restructuring concept.”

“During the preliminary insolvency proceedings, we have worked very closely with our insolvency administrators on a restructuring plan in the past 3 months and tried to find a potential acquirer to continue our story. Unfortunately, we have not been able to find investors to continue our mission,” the CEO added.

The platform will allow trading until the end of November and is asking its customers to withdraw their funds latest by 18 December.

“Customers have access and will be able to withdraw all funds until the aforementioned date. All assets in your Nuri account are safe and unaffected by Nuri’s insolvency,” Walcker-Mayer stated.

The cryptocurrency space witnessed a domino effect with the plummeted market value earlier this year. It directly impacted the lending platforms and the collapse of Three Arrows Capital pushed its creditors into trouble.