A $2.7 billion unicorn just filed for bankruptcy

Powa Technologies

Powa Technologies was valued at $2.7 billion just a few months ago. Today, the British unicorn has filed for bankruptcy.

The company announced that it went bankrupt on Friday and laid off 74 people from its 311 person staff.

The London-based Powa had been hailed as the biggest success story in the British tech scene.

Its CEO Dan Wagner claimed that Powa would become “the biggest tech firm in living memory.”

Powa created a mobile payment app and point of sale terminals for retailers.

Wagner’s pushed forward with creating a payment system that would provide a “seamless experience across all purchase channels.”

The company was also working on “point and click” technology that would allow users to buy a product after scanning its special “PowaTag” which would be printed out with advertisements.

Powa started its massive valuation when it raised $175 million in 2013.

The unicorn used that money to rapidly expand, opening offices in London, New York, and several other high-cost cities around the world.

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While Powa continued to develop its technology, it failed to increase its customer base enough to become profitable.

In late 2015 rumors started that Powa was failing to pay its own staff and contractors.

Unicorns, or private companies valued at more than $1 billion, have run into hard times in recent months. Among unicorns issuing layoffs have been Jawbone, Evernote, and Tango.

Deloitte, which was appointed as the administrator of Powa on Friday, said Tuesday’s layoffs were necessary. “It has not been possible to continue running the company at its current capacity,” it said in a statement.

Deloitte is helping Powa find potential buyers for the company.