Builder.ai
Builder.ai (formerly Engineer.ai Corporation[1]) is a smartphone application development company which claims to use AI to massively speed up app development. The company is based mostly in the United Kingdom and United states, with smaller subsidiaries in Singapore and India.[2] After allegations that it has exaggerated its AI capabilities and misreported its financials, the company entered insolvency proceedings in 2025.[3]
History
[edit]The company was founded in 2016 after splitting from an earlier company.[4] It advertised itself as making website or app creation “as easy as ordering pizza”, which attracted investors.[2]
In 2023, it received 230 million dollars in a 2023 funding round by investors like Microsoft and the Qatar Investment Authority.[5] Microsoft originally planned to integrate Builder.ai technology with its Azure software before creditors seized funds from Builder.ai.[6]
In May 2025, Bloomberg News accused Builder.ai and another Indian company VerSe of using round-tripping, a practice in which company sells then buys back an asset for the same price, to inflate revenue data between 2021 and 2024. VerSe has denied such claims, while Builder.ai declined to comment.[7] Another report alleged the company sometimes inflated sales figures by more than 20%. In 2025, the company hired an auditors to verify post-2023 financials. In mid-2024, the company has decreased its revenue prediction for latter half of 2024 by 25%.[5]
On February 27, 2025, it was announced that Sachin Dev Duggal has resigned as CEO, while keeping his board position and the title “chief wizard”. Manpreet Ratia was appointed next CEO. Additionally, in the same year, the company reduced its board from nine seats to five and requested that Duggal give up four of the five seats he previously held.[5] On May 20, Ratia told her employees in an internal call that funds had run dry and the company will enter bankruptcy proceedings.[4] The company has laid off 80% of its workforce, or around 1000 people.[6] In response to high debt and low balance, some shareholders pitched in $75 million dollars to the company in early 2025.[2]
On May 2025, Builder.ai announced insolvency proceedings after creditors seized 50 million dollars which were borrowed in October 2024.[8] Duggal is seeking a deal with investors to buy back the company.[2]
References
[edit]- ^ Silberling, Amanda (2025-05-20). "Once worth over $1B, Microsoft-backed Builder.ai is running out of money". TechCrunch. Retrieved 2025-06-04.
- ^ a b c d O'Murchu, Cynthia; Smith, Robert; Heal, Alexandra (2025-05-23). "Builder.ai founder plots potential deal to buy failed company". Financial Times. Retrieved 2025-06-04.
- ^ Purnell, Newley; Olson, Parmy (2019-08-14). "AI Startup Boom Raises Questions of Exaggerated Tech Savvy". Wall Street Journal. ISSN 0099-9660. Retrieved 2025-06-04.
- ^ a b Speed, Richard (21 May 2025). "Builder.ai coded itself into a corner – now it's bankrupt". The Register.
- ^ a b c "Microsoft-Backed Startup Builder.ai Hires Auditors to Investigate Inflated Sales". Bloomberg News. March 31, 2025.
- ^ a b "Builder.ai collapses after revelation that its "AI" was hundreds of engineers". TechSpot. 2025-06-03. Retrieved 2025-06-04.
- ^ "Builder.ai Faked Business With Indian Firm VerSe to Inflate Sales, Sources Say". Bloomberg.com. Archived from the original on 2025-05-31. Retrieved 2025-06-04.
- ^ Smith, Robert; Heal, Alexandra (2025-05-22). "Microsoft-backed Builder.ai collapsed after finding potentially bogus sales". Financial Times. Retrieved 2025-06-05.