One of the pioneers of the UK tech sector, Blippar, has collapsed into administration over a funding row.
The augmented reality firm, whch has been involved I many retail and consumer projects, was co-founded by Ambarish Mitra and Blippar was one of the UK's tech "Unicorns" - start-up businesses that are worth $1bn or more.
Mitra became a brand ambassador for the UK to promote British innovation around the world and raised big sums from American and Malaysian backers who bought into the message that augmented reality (AR) was the next big thing.
Blippar was founded in 2011 by Ambarish Mitra and Omar Tayeb and they say they came up with the idea for the company after sharing a joke about the Queen coming to life out of a £20 note.
At one stage, the company said it employed more than 300 people, although that number is believed to have reduced to about 75 at the time of its administration.
But the business appeared to depend on a very fickle set of customers - advertising agencies wanting to use its augmented reality tools in their campaigns.
A few years ago it did appear to have something that differentiated it - users could point its phone app at everyday objects and they would animate into action, providing useful information or serving up an advert.
Not only are much bigger firms offering similar technology but big brands seem to have concluded that it's a gimmick whose time may already have passed.
What's more Blippar suffered from a lack of focus, trying out a range of ideas - making an app for Google Glass, opening a Silicon Valley office, launching a facial recognition service.
RPA Perspective The company announced the news on Monday, blaming a dispute between investors for the move. A major shareholder, Malaysian sovereign wealth fund Khazanah Nasional, blocked an emergency $5 million round of funding for the start-up, which lost £35 million in 2017. The funding round would have diluted Khazanah’s share in the company.
Mitra had previously raised money for Blippar from major investors Qualcomm and a Malaysian sovereign wealth fund.
However, joint administrators Paul Appleton and Paul Cooper of insolvency firm David Rubin & Partners said Blippar had fallen into administration "effectively as a result of an alleged dispute over continued funding".
They added: "Following their appointment, the administrators are now exploring all possible options for the future of the business for the benefit of all stakeholders."
There is speculation Candy Ventures could buy some of the its assets out of administration. Candy previously bought the assets of another venture, Crowdmix, after it fell into administration in 2016.
According to reports, several former insiders have privately raised questions about decisions made Blippar, including heavy investment into artificial intelligence technology rather than its core augmented reality advertising business.
The company's Twitter feed said: "We're saddened to announce that Blippar has gone into administration today. We're eternally grateful to all our team members, customers, partners, our board and investors who have been with us on this incredible journey."
