Builder.ai, once a prominent name in the AI-powered app development space, is now facing significant financial turbulence and has entered insolvency proceedings. The company, previously valued at over $1 billion, is grappling with the consequences of financial mismanagement and internal structural challenges.
Founder Sachin Dev Duggal has stepped down from his role as CEO but remains on the company’s board. He is currently exploring options to buy back Builder.ai or acquire its core assets through a pre-packaged insolvency arrangement. This effort is estimated to require at least $10 million in immediate funding, with an additional $25 million needed to maintain and stabilize operations.
Builder.ai operates across multiple regions including the UK, US, India, and Singapore. However, its financial recovery is complicated by the fact that much of its intellectual property had been pledged as collateral on a $50 million loan that has since defaulted.
Internal reviews have uncovered serious discrepancies in reported sales and revenue figures, casting doubt on the company’s prior financial statements and triggering further scrutiny.
As stakeholders evaluate the next steps, the future of Builder.ai remains uncertain. The outcome will largely depend on the success of any restructuring deals and the company’s ability to restore credibility and operational momentum.
