Builder AI raised £334 million from investors including Microsoft, Qatar’s sovereign wealth fund and Insight Partners. The company achieved a valuation of $1.5 billion.
A former EY Entrepreneur of the Year, Imperial College graduate Sachin Dev Duggal (pictured) who founded the company and was Chief Wizard of Builder AI before leaving in February, gave investors a 2024 sales forecast of $220m for which was later revised, after an outside audit, to $50 million.
The company borrowed $50 million last year and owed $88m in cloud services fees.
Investors appointed Manpreet Ratia to save the company but, says Ratia, lenders pulled out $40 million of cash and restricted access to all funds.
It was alleged that far from generating apps by automation, Builder AI’s app creation software was mostly created by human beings in India.
Builder AI’s US holding company has filed for Chapter 7 bankruptcy with liabilities of up to $100 million against less than $10 million in assets. Alvarez & Marsal are to oversee the insolvency process in the UK.
