Among the Munich startups that faced insolvency in the third quarter of 2023 is Xpay. The credit card startup, founded in 2016, wanted to become a leading provider in the embedded finance sector with prepaid credit cards and corresponding data analytics. With investments totaling 50 million euros, the startup failed to secure follow-up financing. At the end of August, the startup had to file for preliminary insolvency at the Munich District Court. This applies to Xpay Holding AG as well as the Xpay Solutions GmbH and Xpay Development GmbH. The Xpay Card Services GmbH, which operates as an e-money agent at the operational center, is not affected by the insolvency. The company now aims to reduce ongoing costs to make itself more attractive to investors and enable continuation of operations.
The robotics company Franka Emika also faced payment default. Like Xpay, this startup founded in 2016 failed to complete a new financing round. According to industry publication Automationspraxis, this happened due to disagreements at the shareholder level. Franka Emika’s order books are full and the provisional insolvency administrator is confident that investors can be found to continue business operations.
The founders of The Football Company, on the other hand, had to shut down their company. They wanted to create a football metaverse based on avatars, licensed collectibles, and competitions. At the core of their offering was a football manager game, with revenue to be generated through NFT issuance. Among the investors who put a total of 2.5 million euros into the startup was football professional Joshua Kimmich. However, in April the startup was forced to initiate insolvency proceedings. In July, insufficient assets were determined.
Updates on Sono Motors insolvency
Other Munich startups that reported their payment inability to the district court in the third quarter of 2023 according to the insolvency notice portal include the biotech startup Epiqmax, natural cosmetics startup Kia-Charlotta, the “functional chewing gum” provider Clevergum, Wagawin (digital marketing), and esports coaching startup Gamers Academy.
Additionally, the insolvency proceedings of Sono Motors were opened in the third quarter. 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 only be filed in the event of threatened insolvency or over-indebtedness, not in the event of actual insolvency. Furthermore, the intended restructuring must not appear obviously hopeless and payment default must not be expected even during protective shield proceedings. The company stated:
“Sono Motors GmbH is still in negotiations with several potential investors who are interested in the long-term continuation of the company.”
Update: Although Wagawin GmbH had to cease operations at the end of August 2023, the managing directors managed to work out a solution in the course of September to take over the intact business of the subsidiary from Asia (Wagawin Asia). Additionally, other important assets such as brand and technologies were acquired. Towards the end of 2023, the company re-entered the German and European market. For this purpose, Wagawin Europe GmbH was founded.
