Ocado-backed robotics start-up, Karakuri, has been sold for just £350,000, despite attracting significant investment.
- Founded in 2018, Karakuri developed innovative kitchen automation solutions including a robotic chef and an automatic fryer.
- Despite raising £13 million from Ocado and the Future Fund, the firm fell into administration due to financial challenges.
- Karakuri’s financial difficulties were exacerbated by an inability to secure additional investment and a challenging economic environment.
- The sale follows Ocado’s legal victory over AutoStore, highlighting shifts in the technology investment landscape.
In a surprising turn of events, the robotics start-up Karakuri, which had garnered attention and investment from notable entities such as Ocado, has been sold for a mere £350,000. This sale comes in stark contrast to the substantial financial backing the company previously received, including a £13 million investment from Ocado and the taxpayer-supported Future Fund initiative.
Karakuri, founded in 2018 by Barney Wragg, was at the forefront of developing cutting-edge kitchen automation technologies. Their most notable creations included a robotic chef designed for noodle preparation and an automatic fryer, which had undergone trials with the restaurant chain Nando’s. Despite these technological advancements, the company struggled to achieve financial stability.
The start-up faced significant financial hurdles, culminating in its collapse into administration in June. This downfall was primarily due to an inability to secure further external funding necessary to expand its operations. The company reported a spending of £3.3 million in 2022 amidst a drying up of venture capital investments.
The British Business Bank, which was involved through the Future Fund, declined to comment on specific cases but noted the importance of protecting taxpayer interests. Damian Webb of RSM, the accountancy firm involved, highlighted the difficulties posed by the current economic climate, stating, “Karakuri explored all available options to secure the available funding to take it to profitability. Regrettably, the current economic landscape undermined these efforts.”
This development unfolds against the backdrop of Ocado’s recent legal triumph over Norwegian company AutoStore, wherein Ocado received £200 million after a protracted legal battle. This situation underscores the volatile nature of investments and technological advancements within the sector.
Karakuri’s story is a cautionary tale of the challenges faced by start-ups in securing sustained financial backing amidst economic uncertainties.
