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7h ago

Builder.ai Collapses as Bankruptcy Filings Begin Across Five Jurisdictions

Once valued at over $1 billion, the AI startup's downfall follows financial mismanagement, creditor cash seizures, and leadership turmoil.

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Overview

  • Builder.ai has entered insolvency proceedings and is filing for bankruptcy in the UK, US, India, UAE, and Singapore.
  • A major creditor, Viola Credit, seized $37 million, leaving the company with only $5 million, which is trapped in Indian accounts due to cash movement restrictions.
  • The company laid off most of its employees as it struggled to address a severe cash shortfall and mounting debts to Amazon and Microsoft.
  • Manpreet Ratia, who replaced founder Sachin Dev Duggal as CEO in February 2025, cited past leadership decisions and financial strains as key factors in the collapse.
  • The company's AI-driven app-building model faced scrutiny for relying heavily on human coding, highlighting broader challenges in turning AI hype into sustainable business models.