Losses at Euan Blair’s Multiverse nearly triple in US growth push
Losses at Euan Blair’s education start-up Multiverse nearly tripled last year as it ramped up its growth push in the US and pumped cash into new tech, accounts seen exclusively by Morning Wire reveal.
Multiverse, founded by Tony Blair’s son Euan in 2016, grew its revenues by 66 per cent to £45.2m in the year to March but losses widened dramatically as it doubled down on growth in the States.
The Paddington-headquartered start-up haemorrhaged £40.5m over the year, up from £14.2m in the year prior.
The numbers signal a period of growth for Multiverse after it bagged £175.9m from investors last year at a coveted ‘unicorn’ valuation of £1.36bn.
Founded in 2016 as WhiteHat, the firm says it aims to provide an “alternative to university” and give school leavers a route into top jobs.
However, Morning Wire revealed last month the firm had slashed the headcount of its so-called early talent team and pivoted into ‘upskilling’ staff already in work, after its clients cut their spending on new apprentices.
Former employees told Morning Wire the move had given rise to a “cut throat” culture of “fear” as bosses looked to rein in losses and pursue profit.
However, speaking with City A.M. last week, Blair said the firm’s investors, including Lightspeed Ventures and General Catalyst, were pleased with the strategy of the firm.
“We have a board that’s really happy with the direction of the company and what we’re doing. They’re really excited about US growth,” he said.
“I’m really excited about UK growth as well, and the fact is we’re in a good position where we are still growing in an environment where many businesses are struggling. We’ve been pretty fortunate in that regard.”
In its accounts, Multiverse said it had grown its team by 50 per cent in the year to March and now had some 13,300 apprentices on its books.
Multiverse ramped up its push into the US in June last year after raising its Series D from investors. The company also snapped up education tech firm Eduflow earlier this year in a move it said had “contributed to the overall net loss” but is allowing it to “deliver more efficiently”.
Former staff say the company has struggled to cope with its dramatic growth and standards have dipped at times, which Multiverse denies.
In its accounts today, Multiverse said “the key risk to Multiverse is ensuring we have the right number of skilled coaches to deliver our outstanding training programmes without any compromise on quality.”