Ocado-backed robotics start-up Karakuri on brink of collapse

A robotics start-up by which the net grocer Ocado is a sizeable shareholder is that this weekend on the point of collapse.

Sky News has learnt that Karakuri, which developed expertise able to assembling ready-meals for meals business purchasers, is on the point of submitting a discover of intention to nominate directors.

City sources mentioned that RSM, which has been working with the corporate for a while, was the possible administrator, with a submitting anticipated as quickly as Monday.

Karakuri has been in talks for a number of months to safe extra funding, and had lately been discussing a rescue cope with Henny Penny, a US-based food-service gear producer.

Those negotiations are, nevertheless, mentioned to have fallen aside in current days.

If Karakuri can not discover a last-ditch deal to safe financing, its collapse will put in danger roughly 30 jobs and deal a blow to the expertise sector at a time when the prime minister has set out an ambition to make Britain a world science superpower.

It may also come within the wake of London Tech Week, the flagship annual occasion for the UK tech sector.

The firm was based in 2018 by Barney Wragg, who stays its chief govt.

In an announcement issued to Sky News on Sunday, a Karakuri spokeswoman mentioned: “After intensive negotiations with potential buyers and acquirers to discover all potential choices for the enterprise, we’re sorry to report that Karakuri has been unable to safe the funding required to proceed our developments and convey our merchandise 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 wish to thank all of those that have supported us on our journey, our buyers, clients, suppliers, and most significantly our unimaginable workforce.”

Ocado bought a near-20% stake in Karakuri in 2019 for £4.75m – a modest sum which nevertheless reflected the online grocer’s hopes that Karakuri’s technology could serve as a major asset.

Announcing the investment, Ocado co-founder Tim Steiner described its kit as “doubtlessly a game-changer within the preparation of food-to-go”.

Karakuri had also raised funding from a group of venture capital funds.

One leading tech investor said the company’s impending failure underlined the challenges facing British start-ups in sectors such as the one in which Karakuri operates.

“For all of the discuss of the UK turning into a science and expertise powerhouse, that is an instance of how tough it’s to get revolutionary deep tech start-ups funded within the UK,” the investor said.

“Miso within the US raised $115m up to now; Karakuri raised lower than a fifth of that.

“In many respects Karakuri had more advanced technology and commercial traction – it just couldn’t find investors who believed.”

Nevertheless, Mr Wragg wrote as lately as February that the corporate had benefited from being based, and basing its manufacturing operation, within the UK.

“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 mentioned.