UK tech startup Blippar sinks into administration

London-based augmented reality startup Blippar, which once claimed to be valued at $1.5 billion, has gone into administration.

Corporate insolvency firm David Rubin & Partners announced on Monday that it had been appointed as Blippar’s administrator, and the company published a blog hours later stating that it would let all of its employees go.

Blippar's latest company accounts, dated March 2017, show that the firm employed 261 staff members across its UK, US, Singapore, and New Delhi offices. LinkedIn data indicates the current figure is closer to 125.

The startup, also said that it would wind down its augmented reality business.

"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's services are likely to come to halt once the administrators take control of the business and its servers. As part of the administration process, all employees will be let go. This is an incredibly sad, disappointing, and unfortunate outcome."

Blippar said its administrators, David Rubin & Partners, were seeking a buyer for all or part of its business.

The administration potentially leaves laid-off Blippar employees in a tough position before Christmas.

Blippar was founded in 2011 by Ambarish Mitra and Omar Tayeb. At its height, the firm had some 300 employees, with that headcount reduced to 261 per recent accounts. In 2015 Mitra claimed that a buyer offered $1.5 billion for the firm, but in recent years the company’s story has been one of misdirection and decline. A report by The Financial Times in 2017 revealed Mitra had embellished his CV, the company made huge losses that same year; and at the beginning of 2018 it shut its mountain view offices and lost key executives.

The company originally offered consumer AR products, with an app that recognized household products and landmarks, and a platform that let users turn their face into a “digital billboard.” It later pivoted to B2B, hoping to sell its technology to other firms.