This would be a major test for African entrepreneurs going into the business of consumer robotics. Barely 3 years in operations, Reach Robotics, the Bristol, United Kingdom-based consumer robotics company co-founded by the Nigeria-born Silas Adekunle has shut down, even with over $7.8 million in funding received by the company.
“Unfortunately, for Reach Robotics, in its current form at least, today marks the end of that journey, ’’ Adekunle announced on his Linkedin page
Here Is All You Need To Know
- Called MekaMon, Reach Robotics describes its product as a “battlebot” that uses augmented reality technology to allow gamers and robotics enthusiasts alike to play around with the device in both the real and virtual world.
- You can control the MekaMon with a smartphone or tablet (they’re compatible with both iOS and Android-supported devices), making the four-legged robots walk around or do flips right in front of you. Connecting the MekaMon to a smart device via bluetooth and opening a free-to-download MekaMon app also unlocks a world of virtual gameplay where your robot can do virtual battle in your actual living room.
“The best way to think of a MekaMon [is] as an entertainment platform,” Adekunle told CNBC Make It. “You’ve got this robot that’s got four legs — really agile, lots of personality, lots of character. You control it from your smartphone or tablet. The more you play with it, the better it gets. You can compete with other people.”
- After selling out its initial run of MekaMons, Reach Robotics landed a major investment round in July 2017, raising $7.5 million from a group led by Korea Investment Partners and iGlobe Partners. (Reach Robotics’ total fundraising now tops $10 million, Adekunle was onve quoted as saying.)
- In November 2017, Reach caught the attention of Apple and the tech company signed an exclusive deal to sell the robots online and in brick-and-mortar Apple stores across the US and UK. For Adekunle, it was an amazing feeling to have Apple take an interest in his product and it gave the MekaMon a stamp of approval from one of the biggest companies in the world.
- While Reach’s distribution deal with Apple was initially exclusive — meaning that MekaMons were only sold either by Apple or on Reach’s own website — now, the robots are also sold by Amazon as well as by the Harrods department store in London and, soon, the MekaMon will be sold by the US toy store FAO Schwarz, Adekunle said.
“These are some of the strongest brands in the world, so that gives our customers confidence that the products that they’re buying are also high quality,” he said late last year.
End of The Road
The latest announcement is coming rather surprisingly.
In a post called “Reach Robotics — End of the Road,” Adekunle mentioned the “consumer robotics sector is an inherently challenging space — especially for a start-up.”
One of the Co-founders John Rees confirmed that “the decision has been made to close the business and appoint administrators, effective as of 02/09/2019,” according to a report by therobotreport.com
Below is Adekunle’s LinkedIn post reprinted in its entirety:
“I am immensely proud of what we have achieved. Since founding Reach Robotics at the Bristol Robotics Laboratory, we made huge strides in our technology both in terms of our hardware and app development. We took MekaMon from prototype to market, introduce the world to the first gaming robot with seamless AR integration, launched in dozens of territories and developed a unique education offering that will live on through many initiatives.
“This simply could not have happened without the highly skilled and creative people that have been part of the Reach Robotics journey. I speak for myself and my fellow co-founders Chris Beck and John Rees when I say it has been a privilege and we have no doubt that they will continue to innovate and enrich the sector. Personally, I am grateful for the experience, lessons learnt, the connections and the opportunity to inspire young people from under-represented backgrounds in STEM and entrepreneurship.
“I am thankful to everyone who has been a part of this journey, from my co-founders Chris and John, who have been there through thick and thin, to members of the management team who were supportive in the most difficult of times, Jonathan Quinn, Kathryn Green, Philip Green just to name a few.
“Thank you to all of our investors, advisers, mentors, family and friends over the years. Special thanks to UWE, Bristol Robotics Laboratory, Pervasive Media Studio, SetSquared and so many others who have supported our growth. Reach Robotics began with the vision of creating advanced and accessible robotics to entertain, inspire and educate. I hope to carry that vision forward into the future.
“Following some travel and much needed rest, the journey will continue in the Non consumer Robotics sector and the STEAM Education sector.”
Ran Out of Cash or Unprofitable?
The Times, a British newspaper, reported in July 2019 Reach Robotics was cash-strapped. The report said, “Reach Robotics is under pressure from a creditor and is looking for investment or a sale to stave off collapse. Reach filed notice of its intention to appoint an administrator last week, giving it 10 working days to settle its debts. It has been laying off some of its 30 staff.”
Adekunle however fired back, however, telling BusinessCloud, “sometimes you file to give yourself just enough time to settle creditors so you’re not forced into liquidation where the assets then become at risk.” The report added that Reach Robotics was in “due diligence discussions for acquisition as it repositions itself from a consumer-facing robotics firm to one with education at its core.”
Reach Robotics launched a division in May 2019 aimed at the STEM education sector called ReachEdu. It is unclear if ReachEdu will continue as a business unit.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.