Blippar, a company that specialised in augmented reality (AR) software and mobile apps, has entered administration following a funding row with one of its shareholders, according to a blog post on their website.
The UK tech firm, which was launched in 2011 by Ambarish Mitra and Omar Tayeb, said that one of its major shareholders blocked an emergency round of additional funding.
The business, which was once hailed as a British tech “unicorn” valued at more than $1bn (£790m), has appointed administrators.
Paul Appleton and Paul Cooper of insolvency firm, David Rubin & Partners, have been appointed to carry out the administration.
“We will be learning more about the administration process over the coming days and will keep all our stakeholders informed. We are not in a position to provide all of the details, at this time. The administrators, which have been appointed by a UK court, will be expected to find a buyer for all or parts of the business”. Blippar stated in their blog post.
The company says that the team has worked hard to increase profitability and generate long-term business value for stakeholders.
The strategy was approved unanimously by the board and required a small amount of funding, but the necessary funds needed shareholder approval.
“Regrettably, one shareholder voted against the additional funding, effectively blocking the investment even if they were not asked to participate in any further financing of the business, and despite our extensive efforts to reach a successful resolution,” Blippar said.
According to the blog post, all employees contracts will be terminated, which the company describes as “an incredibly sad, disappointing and unfortunate outcome”.
At one point, the company employed more than 300 people, but that number dropped to 75 at the time of its administration.