Ocado-backed robotics start-up Karakuri has lined administrators after failing to secure new funding, putting the financial future of the company at risk.
According to a Sky News report, the company – which was founded in 2018 and developed technology capable of assembling ready-meals for food industry clients – has appointed accountancy firm RSM to act as administrators.
Online retailer Ocado is a sizeable shareholder in Karakuri, buying an almost 20% stake in 2019 for £4.75m.
If the firm cannot find a last-ditch deal to secure financing, its collapse will put at risk roughly 30 jobs as well as a large blow to the technology sector.
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A Karakuri spokeswoman told Sky News said: “After extensive negotiations with potential investors and acquirers to explore all possible options for the business, we’re sorry to report that Karakuri has been unable to secure the funding required to continue our developments and bring our products to market.
“As a result, as of Monday, we will begin to wind down our operations and are working with external advisors on the next steps.
“We’d like to thank all of those who have supported us on our journey, our investors, customers, suppliers, and most importantly our incredible team.”
One leading tech investor said: “For all the talk of the UK becoming a science and technology powerhouse, this is an example of how difficult it is to get innovative deep tech start-ups funded in the UK,”
“In many respects Karakuri had more advanced technology and commercial traction – it just couldn’t find investors who believed,” the investor said.
“With the right focus on education and the correct incentives for long-term investors, I believe the UK has the potential to become a world leader in smart systems and robotics for many years to come,” he added.
The news comes as Ocado shares surged last week following a two year slump, as investors bet on the supermarket making a rebound.
