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.
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 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.
