Geniac, the workplace as a service, is shutting down after Grant Thornton pulls assist
Geniac, the London-based startup that offered an “office as a service” for small and medium-sized companies, is quickly to enter the deadpool.
TechCrunch has discovered that majority proprietor Grant Thornton, the worldwide skilled providers firm, has made the choice to shutter Geniac as of April fifth. Clients have been knowledgeable initially of this month that they’d have to discover a new supplier, while Grant Thornton has confirmed the choice.
“We are sorry to announce that we have decided to close the Geniac service. We had high hopes for Geniac, but unfortunately, we are not making the progress we wanted, to be able to continue to provide the best service to our clients,” reads the e-mail Geniac despatched to out clients.
“Yes, we have we have made a decision to close Geniac. We will no longer be able to offer services to clients after 5 April 2018,” says a Grant Thornton UK spokesperson.
Based in 2014 by ex-Accenture consultants, Michael Galvin and Eduardo Martinez, Geniac promised to be a one-stop-shop for SMEs that built-in payroll, accounting, authorized and HR providers right into a single platform, in what it dubbed “office as a service”.
In July 2015, the startup introduced it had secured assist from Grant Thornton UK in a deal value as much as £22 million in backing, although I perceive this was closely contingent on Geniac assembly sure targets, which, it appears, it’s did not do.
The announcement was additionally spun as a funding story when in precise truth Corporations Home information present that Grant Thornton successfully turned the proprietor of the startup through its personal acquisition arm on the time of the funding.
Associated to this, in response to their respective LinkedIn profiles, each founders left Geniac inside the area of a few 12 months. “Geniac’s founders, Eduardo Garcia and Mike Galvin, left the business to pursue other opportunities,” a Grant Thornton UK spokesperson tells TechCrunch.
The choice by Grant Thornton to tug its assist of Geniac isn’t essentially a shock in itself — it’s not unusual for acquisitions to not work out in addition to hoped and regulatory filings present the startup made a lack of over £2 million within the 12 months to June 2016 (it has but to file accounts for 2017).
Nevertheless, enterprise homeowners I’ve talked to say that they selected Geniac as a supplier due to its publicised assist from Grant Thornton. The timeframe earlier than Geniac shutters isn’t being well-received, both.
“One month’s notice is just too short a period,” says Ben Fletcher, who runs Quick Development Icons, an invitation-only community for founders and CEOs of profitable scale ups and is a consumer of Geniac. “It’s certainly given me a very dim view of Grant Thornton as they put their name behind it but have let the customers down”.
“I have found a replacement accountant at a slightly lower price, but the transfer over will cost me £1,000. Then there’s the time taken to sort out the transfer and bring the new accountants up to speed,” he provides.
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