Ocado-supported robot chef sold for a penny in pounds sterling

Founded by Barney Ragg in 2018, Karakuri has developed a robotic noodle arm and an automatic fryer. Photo: Ocado

The startup that made robotic chefs and raised millions of investments from Ocado was sold in a package for just £350,000.

Karakuri, founded by Barney Ragg in 2018, has developed a robotic arm for noodle feeder and automatic fryer tested with Nando's.

The startup has raised £13m from food delivery company Ocado and Brent Hoberman's First Minute Capital. The taxpayer-backed Future Fund, the rescue startup launched by Rishi Sunak during the pandemic, has also provided investment.

However, in June the firm collapsed and 30 employees lost their jobs. failed to raise outside funding to expand its kitchen automation business. The company lost £3.3m in 2022 as venture capital dried up.

Administration documents showed how investors tried to recapitalize the business a few months ago. The funding offer required the Future Fund to agree to change the price at which the loan notes it provided to the business would be converted into equity.

However, the documents state that the fund «refused to support» the change in the terms of the loan. . The deal ultimately fell through.

A spokesman for British Business Bank said: “We do not comment on individual cases due to commercial confidentiality, but the bank will always strive to provide value for money and protect the interests of taxpayers. interests.”

RSM was hired to advise on a possible administration. In July, a packaging deal was struck with Henny Penny, purveyor of KFC and Wendy's. As part of the deal, the Karakuri prototypes were sold to an American kitchen equipment company.

Damian Webb, partner at RSM, said: “Karakuri has explored all available options to secure affordable funding to bring it to profitability. . Unfortunately, the current economic climate has undermined these efforts.”

This comes as the once-high valuations of food technology companies have collapsed. Zume, the US start-up that built a robotic pizza oven, collapsed earlier this year after raising $500m (£393m) from investors.

It can also be reported that Satis AI, a kitchen technology company that has raised money from UK-based venture capital MMC, has filed a notice of plans to appoint administrators, opening up a ten-day period for the company to find new funding or sell the business before administrators take charge.

Satis.AI describes itself as offering an «AI kitchen brain» that monitors restaurant meals as they are assembled using cameras mounted over chefs' workspaces. For example, if a chef forgets to include an ingredient or item in a meal to be delivered, the system alerts them before the food is shipped or served to customers.

Its founder, Mo Hodadady, previously said: “ This camera understands people, food, packaging. If [the chef] misses something, he will let him know and soften it up.”

Mr. Khodadadi declined to comment on the administrators appointment notice.