Startup Powa Techologies Files Bankruptcy

by San Antonio Attorney

Powa Technologies was considered to be one of the hottest ‘British Unicorns’ prior to its financial collapse.  The e-commerce start-up enterprise that was previously valued $2.7 billion months ago became bankrupt last Friday.  The company laid off 74 employees last Tuesday.

Powa, a London-based company, was very popular in British tech industry.  Dan Wagner, the CEO of Powa declared the company as one of the biggest tech firms in living memory.

Unicorn is a term for private companies that hold value for more than $1 billion in the United Kingdom.

Powa devised a mobile payment application, which also served as a point of sale terminal for retailers.  Wagner’s primary goal was make a payment system that was less complicated to carry out in all purchase channels.

‘Point and click’ technology was also created so that users will purchase after scanning the special ‘PowaTag’ featured in advertisements.

In 2013, Powa made the biggest investments for a start-up company and raised $175 million with Wellington Management as one of its investors.

Powa created a vast expansion to other cities but did not gain profit and customers.  Since then, the company has been unable to pay wages to staff and contractors and eventually went into administration as of Friday.

Powa is just one of the recent Unicorns to take a dive due to financial collapse.  In the previous roster, Jawbone, Evernote and Tango experience layoffs and even stable apps such as Snapchat and Dropbox’s status are also highly questioned.  Tech giants are slowly crippling due to financial constraints.

Deloitte, the recently appointed administrator of Powa said that the layoffs were important because it is the only solution in running the company with its minimized capacity.

Deloitte added that the company is open for purchasers and investors to maintain operations.

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