Saturday, 26 Jul 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • House
  • VIDEO
  • ScienceAlert
  • White
  • Watch
  • Trumps
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Microsoft-backed Builder.ai collapsed after finding potentially bogus sales
Economy

Microsoft-backed Builder.ai collapsed after finding potentially bogus sales

Last updated: May 22, 2025 9:10 am
Share
Microsoft-backed Builder.ai collapsed after finding potentially bogus sales
SHARE

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favorite stories in this weekly newsletter.

Microsoft-backed Builder.ai has faced a major setback after an internal investigation uncovered evidence of potentially fraudulent sales practices. The company was forced to revise its revenue estimates down to just a quarter of its prior projections, leading to insolvency proceedings.

Builder.ai, once considered one of the UK’s most promising technology startups with substantial backing from investors like Qatar’s sovereign-wealth fund, informed its employees that it would be entering insolvency proceedings following a default by its lenders.

The company’s lenders took action after Builder.ai submitted revised revenue figures to its auditor, showing a significant decrease from previous estimates. The 2024 revenue estimate was slashed from $220 million to around $55 million, while the 2023 sales figure was reduced from $180 million to approximately $45 million.

Sachin Dev Duggal, the founder of Builder.ai, stepped down as CEO earlier this year, along with the company’s chief revenue officer, Varghese Cherian. However, Duggal retained a board seat and the title of “chief wizard.”

One of the issues that led to Duggal’s departure was the significant amount of uncollected sales that remained on the company’s books for extended periods. This raised concerns about the accuracy of revenue recognition practices at Builder.ai, prompting the board and new leadership to launch an internal investigation.

The findings of the investigation, which were reported to company executives and stakeholders, revealed serious discrepancies in the recorded revenues. There were indications of potential efforts to inflate sales figures, particularly through the involvement of “resellers” in the Middle East who may not have been legitimate.

See also  True Colours Founders Talk Move Into TV Sales at Rome MIA Market

Builder.ai had marketed its ability to use artificial intelligence to simplify the process of app and website development, attracting high-profile investors like Microsoft. The company had borrowed $50 million from a consortium of tech-focused lending firms in October, leading to its insolvency when the lenders seized its funds.

The lenders, led by Viola Credit, Atempo Growth, and Cadma Capital Partners (backed by Apollo Global Management), played a key role in Builder.ai’s financial troubles. The company declined to comment on the situation, stating that it was focused on winding down operations and preserving value for its employees.

Despite the challenges faced by Builder.ai, the company’s downfall serves as a cautionary tale about the importance of financial transparency and ethical business practices in the technology sector. The repercussions of this scandal are likely to reverberate throughout the industry, impacting investor confidence and raising questions about the oversight of high-growth startups.

TAGGED:bogusBuilder.aiCollapsedFindingMicrosoftbackedPotentiallySales
Share This Article
Twitter Email Copy Link Print
Previous Article Revolutionary Contact Lenses Let Human Eyes See Invisible Light : ScienceAlert Revolutionary Contact Lenses Let Human Eyes See Invisible Light : ScienceAlert
Next Article The weird way that penguin poop might be cooling Antarctica The weird way that penguin poop might be cooling Antarctica
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

10 Must-Have Denim Trends for Spring 2025

Spring is finally here, and with it comes the return of denim as a staple…

May 8, 2025

I Want What They Have, Friendship Edition: Zohran Mamdani and Brad Lander

Love is truly a remarkable thing, especially when we have the privilege of witnessing it…

June 26, 2025

Save 40% With This Tarte Teacher Discount!

Tarte Cosmetics Offers a Lifetime 40% Discount for Teachers Calling all teachers! Tarte Cosmetics is…

July 24, 2025

Gold Cup bracket, knockout round schedule: USMNT face Costa Rica in quarterfinals, Mexico vs. Saudi Arabia

The Concacaf Gold Cup knockout rounds are officially set, with the final eight teams ready…

June 25, 2025

Tariffs and Inflation – Econlib

As I pen this analysis, a deluge of commentary is flooding the digital landscape regarding…

March 21, 2025

You Might Also Like

Sidoti Upgrades AAON (AAON) to Buy Despite Investor Day Selloff
Economy

Sidoti Upgrades AAON (AAON) to Buy Despite Investor Day Selloff

July 26, 2025
The economy is buoyant and IPO activity is on the rise: Blackstone
Economy

The economy is buoyant and IPO activity is on the rise: Blackstone

July 25, 2025
First Look: Universal Logistics Holdings
Economy

First Look: Universal Logistics Holdings

July 25, 2025
Pinnacle Financial Partners, Synovus Financial to merge in .6 billion deal
Economy

Pinnacle Financial Partners, Synovus Financial to merge in $8.6 billion deal

July 25, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?