On December 12th, after taking legal and financial advice, the decision was made to put VINAYA into administration. The company engaged a financial advisory firm to help with this process, which has ultimately resulted in the company closing down. As is usual in this type of process, the administrators invited bids from relevant parties and businesses operating in this space to acquire the assets of the company in order to maximise the return for the company creditors. The founders submitted a bid for the same, which was ultimately successful.
The founders are currently exploring the best way to develop or reposition the technical assets of the company in order to determine the best way forward. There are a number of options to assess and it will take some months to conclude the process. One of the options is to concentrate more on the B2B market and larger scale technology platform roll outs; which is potentially more scalable than the previously adopted B2C focus.
Kate Unsworth, Founder and CEO: “Whilst we were going through the process of founding and building a consumer electronics company, it became apparent that the projected rate of growth for the B2C business alone was unlikely to be able to sustain the costs associated with the speed of technological innovation required in order to remain competitive in this space. In contrast, more generic B2B contracts can bring in revenues that are significantly higher than B2C, and the B2B business model is also more scalable. We therefore explored a number of specific opportunities in this space, and were on the verge of signing a large contract which would have been more than sufficient to finance the company’s activities. Unfortunately, there was an unexpected delay in the award of this contract, which occurred so suddenly and unexpectedly that it left a cash flow issue that was impossible to solve in the required timescales.
Our technology platform is built in a fully modular way, making it very adaptable. With VINAYA, we started by creating a wearable technology offering, but this is only one of many applications of our platform; due to its adaptability, the technology can be re-purposed to suit many different needs. We are currently assessing the best way to maximise the potential of what is effectively a highly performant sophisticated IoT platform, capable of working with a myriad of applications currently being developed for this space. We are confident in both the quality of the product and its relevance to this fast growing market. As you can imagine, there are still a number of unknowns, so we appreciate everyone’s support and patience while we assess our options.”
Note 1: The founders are acutely aware that the investors made their pursuit of this opportunity possible and feel that the faith shown by these individuals and organisations should be acknowledged or reflected somehow in the next venture: Investors in Vinaya Technology Ltd will be offered equity in the new company, as a sign of gratitude and good faith (there is no obligation in law dictating this offer, it is a personal choice being made by the original founders of Vinaya Technology Ltd).
Note 2: Existing VINAYA products will continue to work for the foreseeable future.
Note 3: We are communicating directly with each individual Indiegogo backer. The founders are aware of the faith and commitment displayed by every single individual who decided to back the company through the Indiegogo campaign. They explored every potential route to repay this commitment in some way, but unfortunately it just was not possible from a legal and procedural viewpoint. Whilst there can be no guarantees at this stage, and contractual commitment isn’t possible within the confines of the administration process, it is the founders' intention to repay this faith from a personal perspective if the new company structure is successful moving forward. This personal gesture will be by way of gifting new product if and when released, or via the award of shares in the new company, which would obviously produce a financial return in the event that the new company is profitable or sold.
Note 4: For anyone who has been doing business with VINAYA, please forward any further queries or concerns to email@example.com. Obviously responses may be compromised due to lack of resources, but every effort will be made to assist if possible.