mPowa mobile payment solution
The mPowa mobile payment solution lets businesses to take card payments using smartphones Reuters

London-based Powa Technologies, an e-commerce software business, which received £122.5m ($175m, €157m) in backing, has allegedly held back a number of payments to staff and contractors as it faces an uphill battle to raise capital.

According to the Financial Times, the tech company, whose mobile app PowaTag enables people to buy and order something by simply taking a photo of it on their smartphone, reportedly missed salary deadlines last month.

In a video message to employers, which was seen by the FT, Powa Technologies chief executive and founder Dan Wagner explains the company was "missing or late with staff payments and salaries" after admitting the group was was "pre-revenue".

"As we go forward from here that revenue will start to flow in meaningful ways but right now it isn't," added Wagner, who in April 2015 claimed he would build Powa into the biggest tech company in living memory.

He also explained that a number of employees at Powa Technologies across Europe were unable to access their offices after the company, which values itself at £1.89bn, failed to meet a payment deadline with office supplier Regus.

"At times, payroll has been late, but we have always met our commitments to our employees," the company was quoted as saying in the report, as it indicated it was working hard to ensure staff and suppliers were paid in full.