.png)
German (DE) 
English (US) 
Spanish (ES) 
French (FR) 
Hindi (IN) 
Italian (IT) 
Russian (RU) Paula Tudoran
Tue, May 27, 2025, 10:00 AM 4 min read
In This Article:
Builder.ai, the British no-code AI startup once celebrated for its strategic partnership with Microsoft (NASDAQ:MSFT) and a $250 million raise led by the Qatar Investment Authority, announced Tuesday that it is filing for bankruptcy protection.
According to Bloomberg, the dramatic fall comes after a major lender, Viola Credit, seized $37 million from the company's accounts, leaving just $5 million in restricted funds, effectively paralyzing operations across five countries.
Don't Miss:
-
Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late.
-
‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum.
CEO Manpreet Ratia replaced founder Sachin Dev Duggal earlier this year in a boardroom shake-up aimed at restoring investor confidence. Ratia said that most of the company's employees have been laid off and that Builder.ai will now begin bankruptcy filings in each of its operational jurisdictions, including the U.K., U.S., UAE, Singapore, and India, Bloomberg reports.
Founded in 2016, Builder.ai positioned itself as a revolutionary tool for businesses to build custom apps using AI with minimal coding. It raised over $450 million in total funding, attracting marquee investors like Microsoft, the World Bank's IFC, Jeffrey Katzenberg's WndrCo, Lakestar, and SoftBank's DeepCore incubator, Bloomberg reports. In May 2023, Microsoft made an equity investment and announced plans to integrate Builder.ai's platform with its own Azure and AI services.
Builder.ai offered a platform that allowed businesses to create custom smartphone apps with little or no coding, aiming to simplify and accelerate the app development process. The company positioned itself as a no-code AI solution, gaining attention during the surge of interest in generative AI, Bloomberg says. However, recent developments signaled deeper challenges within the company's operations.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
Less than two months ago, Builder.ai confirmed it had revised down key sales figures and appointed auditors to examine financials from the past two years. Former employees raised concerns that sales performance had been inflated in previous investor briefings. According to Bloomberg, these allegations triggered a domino effect of investor caution, internal restructuring, and eventual loss of confidence.
Comments