A Letter from our CEO Kristina
In Nuri's recent history, good news has clearly outweighed bad news. Unfortunately, today I have to share very sad news with you: We have informed our employees that we will let go a part of our team. It was the hardest decision in Nuri's journey so far and I would like to take the chance and explain our reasons behind it.
The startup ecosystem is experiencing extreme shifts
2022 has been a challenging year for the startup ecosystem. Starting with massive corrections in tech and fintech valuations since the end of Q4, the interest rate turnaround in the U.S. and rapidly rising inflation, the market is now experiencing seismic shifts. Venture capitalists have become more cautious and compared to 2021, the venture capital investment records have slowed down considerably. To get funding now and in the near future, companies have to show that they are on the home stretch to profitability - and this is also true for us.
How these shifts impact Nuri
Our strategy and planning so far was set up for high user growth and activity, as these were the parameters for startups in the past - and we have succeeded in achieving that: We are counting almost half a million customers, were able to quadruple our revenue over the course of 2021 and reached all time highs in onboarding customers and financially active users in Q1 this year. We owe this primarily to the passion and dedication of our great, talented team and their achievements. However, as mentioned above, the macro-economic developments are leading to more uncertainty in the financial markets, particularly the venture capital space, meaning that our planned strategy is not in line anymore with the massively changing market expectations.
External developments cannot be influenced, but it’s indeed in our hands how to respond to them. Therefore, we have decided to shift our strategic plans towards earlier profitability to adapt to the new reality in the financial markets.
To set up Nuri in the most successful way for the new reality we’re facing, we had to take the responsibility and act quickly rather than wait. During the past weeks, we had to make some significant, but also often quite uncomfortable decisions. The saddest decision is the reduction of our workforce and therefore parting with some of our team members. In every single case, we went through all possible scenarios to keep our team together and preserve the positions. Every single employee is a part of Nuri and has made the company what it is today. Having to part with some of these team members could not be more painful. Everyone affected will be involved in a fair process, can count on the highest levels of support, from job finding support through our network to mental support via coaching, and further measures to ensure a smooth transition.
Do the market development and the changes at Nuri have an impact on our customers?
The organisational changes at Nuri will have no impact on our customers and the quality & security of our products. We believe that especially in times of uncertainty, people tend to make irrational, emotional financial decisions, which often result in losing money. Because our products promote building wealth in a thoughtful, sustainable, long-term way, they are more important than ever. We will therefore continue to expand our existing product offering, make it even better and provide our customers with the best possible support in taking charge of and shaping their financial futures.
Shifting our focus to sustainable growth
In the history of Nuri, we have already experienced a number of radical changes within our business and successfully weathered downturns in the market. Therefore, one of our core values at Nuri is "Adapt": We’ve always been agile, fast and dynamic, never afraid of making mistakes, but made sure to always learn from them. I am convinced that we will come out of the current developments even stronger than before.
We have always considered ourselves to be "not another bank”. Nuri stands for trust and responsibility without old-fashioned thinking. We were the first to combine the traditional financial world with the new reality of crypto & Blockchain and started a revolution to sustainably change the financial behaviour of people around the globe. We will continue our path to revolutionize the way people grow their wealth.
We will focus on sustainable, long-term growth and build upon what made us so successful: We will double-down on the great products we have built to date and continue to build cutting-edge financial services to allow everyone to take control of their own financial future.
More than ever, we are committed to build the new reality of banking. This is what Nuri stands for.