Among the Munich startups that went bankrupt in the third quarter of 2023 are XpayThe credit card startup, founded in 2016, aimed to become the leading provider in the embedded finance sector with prepaid credit cards and the corresponding data analytics. Despite investments totaling €50 million, the startup failed to secure follow-up financing. At the end of August, the startup was forced to file for preliminary insolvency at the Munich District Court. This applies to Xpay Holding AG as well as to Xpay Solutions GmbH and Xpay Development GmbH. Xpay Card Services GmbH, which is the operational center as an e-money agent, is not affected by the insolvency. The plan now is to reduce running costs in order to make the company more attractive to investors and to enable it to continue operating.
The robotics company was also hit by a payment default Franka EmikaLike Xpay, the startup, founded in 2016, failed to close a new round of financing. As the industry service Automation practice According to reports, this happened due to differences at the shareholder level. Franka Emika's order books are full, and the provisional insolvency administrator is confident that investors will be found to continue the business.
However, the founders of The Football CompanyThey wanted to create a football metaverse based on avatars, licensed collectibles, and competitions. The core of the offering was a football manager game, with revenue to be generated through the issuance of NFTs. Among the investors who invested a total of €2.5 million in the startup was professional footballer Joshua Kimmich. However, in April, the startup was forced to file for insolvency. In July, the insolvency proceedings were declared.
News about the insolvency of Sono Motors
Other Munich startups that reported their insolvency to the local court in the third quarter of 2023, according to the portal for insolvency announcements, are the biotech startup Epiqmax, the natural cosmetics startup Kia Charlotte, the provider of “functional chewing gum” Clevergum, Wagawin (digital marketing) and the e-sports coaching startup Gamers Academy.
In addition, the insolvency proceedings of Sono Motors The startup had already initiated protective shield proceedings in May with the aim of restructuring its business model. An application for protective shield proceedings may not be filed in the event of actual insolvency, but only in the event of imminent insolvency or excessive indebtedness. Furthermore, the intended restructuring must not be obviously hopeless, and insolvency must not be expected even in the protective shield proceedings. The company stated:
“Sono Motors GmbH is still in negotiations with several potential investors who are interested in a long-term continuation of the company.”
UpdateAlthough Wagawin GmbH had to cease operations at the end of August 2023, the managing directors managed to develop a solution during September to take over the intact business of the Asian subsidiary (Wagawin Asia). In addition, other important assets such as the brand and technologies were acquired. Towards the end of 2023, the company re-entered the German and European markets. Wagawin Europe GmbH was founded for this purpose.
