Apprenticeship training and edtech firm Multiverse has said it’s on track to grow despite reporting financial losses for the sixth consecutive year.
Accounts for the company’s 2021/22 financial year, published this week, reveal that Multiverse made a £14.2 million loss despite its turnover nearly tripling from £10 million in 2020/21 to £27.2 million in 2021/22.
This follows net losses of £10.9 million in 2020/21 and £5 million in 2019/20.
Multiverse hit the headlines in 2022 by becoming the first UK based company to gain ‘unicorn’ status, which is awarded to edtech companies valued over $1 billion, following a drive for investment in the United States which raised £176 million. The company’s valuation at the time was a staggering £1.4 billion.
It’s these investment rounds that will be sustaining the organisation while it racks up annual losses.
The company, owned by Euan Blair, son of former prime minister Tony Blair, has said it is “typical” for venture-backed companies to report losses while it invests in its infrastructure.
A spokesperson for Multiverse said: “We’re at the forefront of growing the number of apprenticeship opportunities in both the UK and the US, doubling the number of apprentices we’re training, expanding our geographic reach, and increasing our team of world-class coaches.
“Investing for growth and reporting a loss is completely typical for this stage of the journey of successful venture-backed companies.
“We have made significant investments across all teams at Multiverse to put the company in the best position to meet the need for our apprenticeships in the year ahead.”
The company’s latest accounts show that it has invested heavily in expanding its staff team, from 181 employees in 2021 to 312 in 2022. This more than doubled its staffing bill from £13.9 million to £30.1 million.
Remuneration of its highest paid director also doubled from £125,000 to £257,033.
Its US operations made up a small proportion of its turnover in 2021/22, just 5 per cent, whereas turnover for its UK operations grew to £26 million from £10 million the year before.
Department for Education statistics for 2021/22 show that Multiverse started 4,940 apprentices, up by 1,980 on the year before. It’s offer includes apprenticeships standards in data analysis, team leadership and project management at levels 3 and 4.
In September 2022, Multiverse became the first provider that only delivers apprenticeships to be awarded degree awarding powers. It currently advertises a BSc (Hons) degree apprenticeship in digital and technology solutions.
Multiverse scored a full slate of ‘outstanding’ judgments in its first full Ofsted inspection in July 2021.
If this was a college the FE Commissioner would be sent in to sort the situation out after one year.