Powa Technologies reportedly ready to appoint Deloitte as administrators while struggle worsens

Powa Technologies, an e-commerce software business, is reportedly ready to appoint Deloitte to oversee its administration, should the company fail to raise sufficient funds to shore up its balance sheet.

According to Companies House the London-based company, whose mobile app PowaTag enables people to buy and order something by simply taking a photo of it on their smartphone, has so far raised approximately £122m (€157m, $174m) but had just over £175,000 available in its bank account at the start of February, with debts totalling £11.5m.

Should the company – who has previously collaborated with the likes of Adidas and L'Oreal – enter administration, the future of its 300 employees worldwide and the company's headquarters in London's Heron Tower would be at risk.

Earlier this week, the Financial Times reported the company, which was originally valued at £1.8bn, had failed to meet payments deadline for staff and contractors in January.

In a video message to employers, which was seen by the FT, Powa Technologies chief executive and founder Dan Wagner explained the company was "missing or late with staff payments and salaries", after admitting the group was was "pre-revenue".

"As we go forward from here that revenue will start to flow in meaningful ways but right now it isn't," he added.

Neither Powa nor Deloitte were available to comment.