Unexpected Bankruptcy! Fintech RIDE Seeks New Investment to Survive

​Berlin-based fintech / online broker RIDE has unexpectedly filed for bankruptcy, raising concerns about the future of its operations. Dr. Björn Gehde, an insolvency expert from Hilgers und Partner, has been appointed as the provisional insolvency administrator.

Gehde is working closely with RIDE's management to secure fresh investment and restructure the company in an attempt to avoid closure. This comes after a liquidity crisis that has left the firm struggling to meet its financial obligations.

RIDE was founded in 2018 by fintech entrepreneurs Felix Schulte and Christine Kiefer, originally with the goal of using blockchain technology to tokenize real estate investments for retail investors.

In recent years, RIDE shifted its focus towards tax-enhanced online investing and helping German retail investors create and manage their own GmbHs (private limited companies) for trading purposes. Additionally, the firm offered CFDs trading services in partnership with FXFlat and Interactive Brokers.

Despite attracting notable investors such as German footballer Mario Götze and claiming to have helped establish over 1,500 GmbHs with more than €700 million under management, RIDE has been unable to stave off financial troubles. According to RIDE's website, the company raised €3 million in its second round of financing in 2022, following earlier funding rounds in 2021 and 2020.

In a statement posted on RIDE's website, the company indicated that negotiations are underway with potential buyers. "Several substantial offers and letters of commitment have been received from well-known investors and established market participants," the statement reads. "There is therefore great confidence that the company will continue to exist in a different corporate form." RIDE assured customers that their funds, held by custodial banks such as Interactive Brokers or FXFlat, remain unaffected by the insolvency process. The company is working to ensure that its existing clients' interests are protected as negotiations progress.