Edinburgh wireless technology firm PureLiFi collapses with loss of 42 jobs
“A strategic shift into manufacturing its own hardware was more costly than initially anticipated” – Thomas McKay, BTG
An Edinburgh-based tech firm that has spent more than a decade developing its light-based alternative to wi-fi has collapsed with the loss of 42 jobs.
PureLiFi, which was founded 14 years ago, has entered administration after failing to raise further development capital. Kenny Craig and Kevin Mapstone of BTG have been appointed as joint administrators.
PureLiFi was established by “father of LiFi” Professor Harald Haas and Dr Mostafa Afgani in 2012 as a spin-out from the University of Edinburgh. It employed 42 staff at its head office in Leith.
The business was at the leading edge of a new, highly-secure light-based wireless communications technology, and had shifted into manufacturing products based on its own “LiFi” technology and intellectual property. Since 2012, the company is understood to have raised more than £35 million in investment from a range of investors, funds and banks.
A fundraising move in July 2022 provided £10m of firepower from the Scottish National Investment Bank (SNIB), allowing the business to commence on its next phase of scaling up.
Thomas McKay, managing partner of BTG in Scotland and Northern Ireland, said: “The firm had received significant investment from numerous sources over the years, and despite creating products and generating revenue with some groundbreaking proprietary wireless technology, the business simply ran out of money before it could cross into profitability.
“A strategic shift into manufacturing its own hardware, rather than licensing its globally patented technology to third-party manufacturers, was more costly than initially anticipated. By the end of the second quarter of 2026 the business had simply run out of cash flow and was seeking sources of additional investment needed to cover losses until the business crossed into profitability,” he added.
“With no further investment forthcoming, the directors were left with no alternative than to appoint administrators to stop the company’s debts rising, and sadly that has led to the immediate redundancy of all 42 employees at the business.”
In April, it emerged that PureLiFi had sealed what was seen as a “landmark” deal that could have helped deliver gigabit broadband indoors without the need for drilling holes or cabling.
The firm said it had agreed a partnership with network equipment maker Askey to “revolutionise” the fixed wireless access (FWA) market.
PureLiFi had been eyeing a future where LiFi - using light-emitting diodes (LEDs), infrared and the higher reaches of the electromagnetic spectrum - could sit alongside and complement wireless technologies utilising lower-frequency radio waves, such as wi-fi, 4G, 5G and beyond.
McKay added: “Our team is working closely with those affected to help them access the financial entitlements and support available to them, including assistance from Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service.
“In addition to ensuring these employees receive the guidance and advice they need during this process, our priority is to identify any business assets and realise maximum value from their sale, especially the valuable intellectual property assets built up over the years of development, to the benefit of creditors.”