Sky News reported today Karakuri, a robotics start-up in which online grocer Ocado holds a significant stake, is on the verge of collapse, according to sources.
The company, known for its technology that assembles ready meals for the food industry, is expected to file a notice of intention to appoint administrators, with accounting firm RSM likely to take on the role. The collapse of Karakuri, which has been seeking additional funding for months, would jeopardize approximately 30 jobs and deliver a blow to the technology sector.
Recent negotiations with US-based food-service equipment manufacturer Henny Penny for a rescue deal have reportedly fallen through. The failure of Karakuri to secure financing will lead to winding down operations. Ocado’s investment in the company reflected their belief in Karakuri’s technology as a valuable asset for the online grocer’s future plans. The impending failure of Karakuri highlights the challenges faced by UK start-ups in securing funding for deep tech innovation. Despite this setback, Karakuri’s founder, Barney Wragg, expressed optimism about the UK’s potential to become a world leader in smart systems and robotics.
