Powa Technologies

Powa Technologies
Founder Dan Wagner[1]
Headquarters Heron Tower, Bishopsgate, London, United Kingdom
Products
Website www.powa.com

Powa Technologies was a UK-based technology company, known for its commerce, mobile commerce and e-commerce services. The company’s flagship product was the mobile application PowaTag.[2] In February 2016, investment company Wellington Management appointed professional services firm Deloitte as administrators of Powa Technologies.[3]

History

Powa was founded in 2007 by British entrepreneur Dan Wagner. The company is attributed as receiving the largest Series A funding round for a technology start-up, collecting $76 million in August 2013.[4] The investment attracted the attention of David Cameron.[5] In June 2014, Powa Technologies acquired Hong Kong business MPayMe and its ZNAP technology. Following the acquisition, Wagner suggested that Powa had an enterprise value of $2.6 billion.[6][7] Powa technologies also partnered up with Iconnect pos to distribute products in a bundled package.[8]

In 2015, they announced that their planned LSE £1.6 billion float would be put on hold until the following year.[9]

As of early 2016, the company had run into financial difficulties, missing payments to staff and third parties.[10] Its Hong Kong office had failed to pay its employees wages on time and to its ex-employees within 7 days, with some of the employees having to seek help from the Labor Department.

On 28 January 2016, Alessandro Gadotti became CEO of PowaTag in the effort of restructuring the business. During the administration he also served as interim CEO for the Group supporting the process and the sale of the companies in the group.

On 19 February 2016, Powa Technologies was placed into administration[11] and on 23 February 2016 Powa Technologies made 74 of its London-based staff redundant.[12]

On 24 February 2016, Powa Technologies filed for bankruptcy and laid off most of their employees [13]

On 25 February 2016, Business Insider revealed that most of Powa's 'contracts' had in fact only been non-binding Letters of Intent [14]

On 2 March 2016, Sky News revealed that two of Powa's core businesses, PowaWeb and PowaTag, have been sold. Under separate deals, PowaTag has been sold to a private consortium, while PowaWeb has been sold in a buyout backed by Greenlight Digital, a UK-based digital group whose interests include Greenlight Commerce Platform and OneHydra for SEO.[15]

After the collapse of the business a series of articles by the Financial Times called into question several of the claims that had previously been made. Powa's self-proclaimed 2014 valuation of $2.6 billion was investigated and it was concluded that $106 million (£75 million) was a more accurate figure.[16] The claimed "10-year strategic alliance with ‘limitless’ potential” deal with China UnionPay that Dan Wagner personally described in a quote to the BBC as “Why did China UnionPay decide to partner with a little British technology company? We’ve trumped ApplePay and the rest of the world here.” was found to be unknown to China UnionPay who had their lawyers request that Powa stop making the false claims [17] and the majority of the partners upon which the investment and consequent valuation had been based, were found to be just Letters of Intent at best.[18]

See also

References

  1. ↑ Sutherland, Ruth (18 September 2013). "PowaTag allows people to shop by just snapping photos". Mail Online. Retrieved 3 March 2014.
  2. ↑ Strauss, Karsten (13 September 2013). "The Secret Technology That Attracted $76 Million And Could Eat Amazon's Lunch". Forbes. Retrieved 3 March 2014.
  3. ↑ "Powa: The start-up that fell to earth - BBC News". BBC News. Retrieved 2016-03-21.
  4. ↑ Lunden, Ingrid (20 August 2014). "Powa Technologies Picks Up A $76M Series A Investment To Take Its Mobile Payment And E-Commerce Platform Large". TechCrunch. Retrieved 8 October 2014.
  5. ↑ Burn-Callandar, Rebecca (21 August 2013). "Powa to create 250 UK jobs after major cash injection". Telegraph. Retrieved 8 October 2014.
  6. ↑ Titcomb, James (12 June 2014). "Powa Technologies valued at £1.6bn after acquisition". Telegraph. Retrieved 8 October 2014.
  7. ↑ Phillips, Andrew Garcia. "The Billion-Dollar Startup Club". The Wall Street Journal. Retrieved 21 November 2014.
  8. ↑ "Archived copy". Retrieved May 19, 2015.
  9. ↑ Ho, Geoff. "Powa Technologies puts float on hold as PowaTag is priority", Express', 1 February 2015. Accessed 28 October 2015.
  10. ↑ Powa Technologies missed staff and contractor payments
  11. ↑ Powa Technologies appoints Deloitte as administrators
  12. ↑ Bust London tech unicorn Powa makes 74 staff redundant
  13. ↑ CFO (2016-02-24). "Former U.K. Tech Darling Powa Goes Bankrupt". Ww2.cfo.com. Retrieved 2016-03-27.
  14. ↑ Finance. "Powa Technologies: Most 1,200 PowaTag deals were 'letters of intent' - Business Insider". Uk.businessinsider.com. Retrieved 2016-03-27.
  15. ↑ "Tech Firm Sold Off After Powa Failure". News.sky.com. 2016-02-19. Retrieved 2016-03-27.
  16. ↑ "So how much was Powa Technologies really worth?". ftalphaville.ft.com. Retrieved 2016-03-17.
  17. ↑ "Powa Technologies and China UnionPay: when a deal isn't what it seems". ftalphaville.ft.com. Retrieved 2016-03-17.
  18. ↑ "Would you have invested in Powa?". ftalphaville.ft.com. Retrieved 2016-03-17.
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