Tech Desk 
May 29, 2025
The app-building platform known as Builder.ai, which had once been touted as the "future of software development", has shut down after faking its AI technology.
The company, based in India, was once valued at $1.5 billion, and although it claimed its goal was to make development as easy as ordering pizza, Builder.ai is now being accused of deceiving investors and customers.
Built by Sachin Dev Duggal in 2016, Builder.ai had contended that its platform used artificial intelligence to help users build custom apps quickly and affordably.
It raised over $500 million in funding from Microsoft, SoftBank, and Qatar Investment Authority. What Dev Duggal didn't share was that the technology behind the "AI" was simply human developers making manual code edits.
Former employees claimed that most of the work was done manually, while some calculations were automated.
It got worse when an internal investigation led to the company announcing it had overstated its total revenue by 300% last year.
While Builder.ai claimed to have made $220 million, in reality the company had only made about $55 million. Investors and creditors panicked as news of the restated figures spread.
The final straw came when large lender Viola Credit seized approximately $37 million from Builder.ai’s accounts.
With only $5 million left in funds and still frozen due to government rules, Builder.ai couldn't even pay its employees.
Moreover, founder Duggal had stepped down as CEO earlier this year. He is now facing a money laundering investigation in India.
Another co-founder, Saurabh Dhoot, is also under legal scrutiny for alleged loan fraud.
