A once-promising robotics start-up leveraging Ocado’s backing faced setbacks, resulting in a sale for a fraction of its original investment. The following points illuminate the journey and its challenges.
- Founded in 2018, Karakuri developed innovative kitchen automation technology but faced financial troubles.
- Despite raising £13 million from Ocado and Future Fund, Karakuri fell into administration due to lack of further investment.
- With £3.3m spent in 2022, the company struggled to secure expansion funding amid an unfriendly investment climate.
- The start-up was eventually sold for £350,000 after administration efforts failed to revive it.
- Efforts by accountancy firm RSM to recapitalize the business were hindered by the economic landscape.
Karakuri, a robotics start-up founded in 2018 by Barney Wragg, was dedicated to revolutionizing kitchen automation with products like a robotic chef for noodles and an automatic fryer. These innovations trialed in outlets like Nando’s demonstrated the company’s potential to change food service operations.
Despite securing substantial investments, including £13 million from Ocado and the taxpayer-backed Future Fund, Karakuri’s journey was cut short. The company fell into administration in June after failing to attract additional external funding critical for its expansion plans. In 2022, it expended £3.3 million, reflective of the challenging environment for venture investments.
The challenging economic conditions were emphasized by Damian Webb from RSM, the accountancy firm engaged to explore administration options. He noted that, despite exploring all possible avenues, the unfavorable economic climate significantly impeded the company’s efforts to secure the successive funding required for its path to profitability.
Ultimately, the business, which had once been a beacon of promise within the robotics sector, was sold for merely £350,000. This marked a stark contrast to the initial investment and potential the company once represented.
According to reports, RSM’s attempt to recapitalize Karakuri failed as the economic landscape proved difficult for start-ups reliant on substantial investment rounds to grow. The sale underscores the volatility and challenges in the high-tech start-up sector, especially amid economic uncertainties.
The fall of Karakuri highlights the precarious nature of high-tech startups reliant on continuous investment amid economic challenges.
