POWA OUT: £1.8 billion London tech unicorn in administration after running out of money
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Deloitte confirmed over email that it has been appointed to take over the business, which has run out of cash and can't pay its debts. Nick Edwards and Rob Harding of Deloitte are in charge.
Deloitte's Edwards says in an emailed statement:
Having just been appointed, we are currently assessing the company's position and our options. These will centre around seeking to sell the constituent businesses as going concerns. We will be working closely with existing management to identify potential purchasers, and keeping staff and other key stakeholders informed of next steps as they become clearer.
Sky News first reported on Friday afternoon that Deloitte was being lined up. Deloitte says in its email that Powa employs 311 people globally.
Business Insider reported earlier on Friday that Powa, which makes a mobile app that lets you buy things with your phones camera, had "significant doubts" about its future after running out of money.
The company has raised at least $175 million (£122 million) to date but had only $250,000 (£175,200) in the bank at the start of February and debts of $16.4 million (£11.5 million).
Despite the huge sums invested in Powa, which has partnered with the likes of Adidas and L'Oreal, CEO and founder Dan Wagner told staff in a video that the company was "basically pre-revenue," according to a video seen by the Financial Times. A company that Powa paid $75 million (£52.5 million) in shares for had just £120 in revenue in the year it was bought.