Builder.ai
In today's article we are going to explore the fascinating world of Builder.ai. From its origins to its impact on today's society, we will delve into all aspects related to Builder.ai. We will analyze its evolution over time, its practical applications, and how it has influenced different areas of human life. Additionally, we will examine the latest research and discoveries related to Builder.ai, as well as opinions from experts in the field. Get ready to embark on a journey of knowledge and discovery about Builder.ai. Do not miss it!
 | |
| Formerly | Engineer.ai |
|---|---|
| Company type | Private |
| Industry | Software development Artificial intelligence |
| Founded | 2016 |
| Founder | Sachin Dev Duggal |
| Defunct | May 2025 |
| Fate | Bankruptcy |
| Headquarters | London, United Kingdom |
Key people | Sachin Dev Duggal (CEO, 2016–2025) Manpreet Ratia (CEO, 2025) |
| Products | Mobile app development Web development |
| Website | builder |
Builder.ai (formerly Engineer.ai Corporation[1]) was a smartphone application development company that claimed to use AI to massively speed up app development. The company was based mostly in the United Kingdom and the United States, with smaller subsidiaries in Singapore and India.[2] After years of allegations that it had exaggerated its AI capabilities (instead relying on outsourced human contractors) and misreported its financials, the company entered insolvency proceedings in 2025.[3]
History
The company was founded in 2016 by Sachin Dev Duggal after splitting from an earlier company.[4] Although his friend Saurabh Dhoot was initially listed as a co-founder, the company later stated that he was not involved in its founding. Both Dhoot and Duggal have faced criminal probes relating to their previous business venture under Videocon.[5] Dhoot served as a board member of Builder.ai from 2018 to 2022.[5] It advertised itself as making website or app creation “as easy as ordering pizza”, which attracted investors.[2]
In 2018, the company announced that it had raised a Series A investment of $29.5 million.[6] Near the end of 2018, it hired Robert Holdheim, an American executive, to run the business; he filed a lawsuit in February 2019 against the company and Duggal, saying he had been unjustly fired for pointing out problems and calling the company "smoke and mirrors".[7] In August 2019, The Wall Street Journal reported that Engineer.ai (as it was then known) used human engineers rather than AI for most of its coding work, contradicting the company's marketing claims about its AI-powered development process.[4][3]
In 2023, the company received 230 million dollars in a funding round by investors like Microsoft and the Qatar Investment Authority.[8] Microsoft planned to integrate Builder.ai technology with its Azure software.[9] Fast Company magazine ranked the company as the third most innovative in A.I.[10]
Collapse and bankruptcy
In May 2025, Bloomberg News accused Builder.ai and another Indian company VerSe of using round-tripping, a practice in which a 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.[11] Another report alleged the company sometimes inflated sales figures by more than 20%. In mid-2024, the company decreased its revenue prediction for latter half of 2024 by 25%. In 2025, the company hired auditors to verify post-2023 financials. [8]
On 27 February 2025, it was announced that Sachin Dev Duggal had resigned as CEO, while keeping his board position and the title “chief wizard”. Manpreet Ratia was appointed as the CEO. The company then reduced its board from nine seats to five and requested that Duggal give up four of the five seats he previously held.[8] On 20 May, Ratia told his employees in an internal call that funds had run dry and the company would enter bankruptcy proceedings.[4]
In May 2025, Builder.ai announced insolvency proceedings after creditors seized $50 million borrowed in October 2024.[12] In response to the company's high debt and low cash balances, some shareholders provided $75 million to the company, with Duggal seeking a deal with investors to buy back the company.[2] By June, the company had laid off 80% of its workforce, or around 1,000 people.[9]
References
- ^ Silberling, Amanda (20 May 2025). "Once worth over $1B, Microsoft-backed Builder.ai is running out of money". TechCrunch. Retrieved 4 June 2025.
- ^ a b c O'Murchu, Cynthia; Smith, Robert; Heal, Alexandra (23 May 2025). "Builder.ai founder plots potential deal to buy failed company". Financial Times. Archived from the original on 30 May 2025. Retrieved 4 June 2025.
- ^ a b Purnell, Newley; Olson, Parmy (14 August 2019). "AI Startup Boom Raises Questions of Exaggerated Tech Savvy". Wall Street Journal. ISSN 0099-9660. Archived from the original on 3 June 2025. Retrieved 4 June 2025.
- ^ a b c Speed, Richard (21 May 2025). "Builder.ai coded itself into a corner – now it's bankrupt". The Register.
- ^ a b Heal, Alexandra; Parkin, Benjamin (21 March 2024). "Men behind Microsoft-backed start-up Builder.ai named in Indian criminal probes". Financial Times. Archived from the original on 21 March 2024. Retrieved 28 July 2025.
- ^ Butcher, Mike (6 November 2018). "Engineer.ai raises $29.5M Series A for its AI+Humans software building platform". TechCrunch. Retrieved 31 August 2025.
- ^ Streitfeld, David (31 August 2025). "How This A.I. Company Collapsed Amid Silicon Valley's Biggest Boom". Retrieved 31 August 2025.
- ^ a b c "Microsoft-Backed Startup Builder.ai Hires Auditors to Investigate Inflated Sales". Bloomberg News. 31 March 2025. Archived from the original on 1 April 2025.
- ^ a b "Builder.ai collapses after revelation that its "AI" was hundreds of engineers". TechSpot. 3 June 2025. Retrieved 4 June 2025.
- ^ Ufberg, Max (2 March 2023). "The 10 most innovative companies in artificial intelligence of 2023". Fast Company. Archived from the original on 22 August 2025. Retrieved 31 August 2025.
- ^ "Builder.ai Faked Business With Indian Firm VerSe to Inflate Sales, Sources Say". Bloomberg.com. Archived from the original on 30 May 2025. Retrieved 4 June 2025.
- ^ Smith, Robert; Heal, Alexandra (22 May 2025). "Microsoft-backed Builder.ai collapsed after finding potentially bogus sales". Financial Times. Archived from the original on 28 May 2025. Retrieved 5 June 2025.
Further reading
- Varsha Bansal (29 July 2025). "Inside the collapse of Builder.ai: Was it even an AI company?". Rest of World. Retrieved 31 July 2025.
- Joshua Chu (2 July 2025). "Unmasking the unicorn". Law.asia. Retrieved 31 July 2025.
- Jessica Huang (17 June 2025). "When No‑Code Became No‑Truth: The Rise and Fall of Builder.ai". IndraStra Global. ISSN 2381-3652. Retrieved 31 July 2025.