Introduction
Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) obtained £118 million in equity funding and secured additional millions through loans. The company received substantial funding but ended up in administration which left investors without any assets. How did Huboo waste so much money?
Where Did the Money Go?
Aggressive Expansion Without Profitability
The company established numerous fulfilment centers throughout the UK and Europe.
The company hired more staff members without verifying that revenue would increase accordingly.
Marketing and Branding Over Sustainability
The company spent large amounts on advertising yet failed to build lasting customer relationships.
The company expanded its operations abroad before establishing a stable foundation in the UK market.
Poor Financial Management
The company experienced revenue growth but its losses expanded at a faster rate.
The company operated without positive EBITDA throughout its existence because it depended solely on investor funding.
Failed Restructuring Efforts
Huboo attempted to obtain emergency funding during late 2024 but investors declined the request.
The announcement of administration occurred after all available cash had been depleted.
Could Huboo Tech Limited Be Any Different?
The new company maintains operations in the same industry while using the same brand identity. The new company maintains the same pattern of reckless spending or will it develop financial discipline for the first time.
Conclusion
The financial management issues at Huboo led to its collapse instead of insufficient funding. Investors suffered significant financial losses during the first Huboo collapse and they risk repeating this mistake with the new Huboo Tech Limited.
