In 2025, Builder.ai, once hailed as a revolutionary force in software development, faced a dramatic collapse. The company’s founder, Sachin Dev Duggal, who had promised to transform the way software is built through artificial intelligence, became embroiled in controversies that led to the company’s downfall.
A Promising Start
Builder.ai was launched in 2016 with the bold promise of making app development as simple as ordering a pizza. It attracted major attention and funding from global investors and rapidly grew into a billion-dollar company. Its vision of simplifying software creation for businesses, regardless of their technical background, made it a standout player in the tech space.
Financial Irregularities and Governance Issues
As Builder.ai expanded, concerns about its internal governance and financial transparency began to surface. The company used auditors with personal or historical ties to its founder, raising questions about objectivity and oversight. Frequent changes in audit firms and the use of smaller, less recognized auditors only deepened suspicion.
In early 2025, the company restated its 2023 revenues and significantly revised its future revenue projections. These announcements hinted at underlying financial instability and mismanagement, particularly involving reseller relationships in the Middle East.
Legal Challenges and the Founder’s Exit
Compounding Builder.ai’s problems was the resurfacing of the founder’s alleged past connections to financial misconduct in unrelated business ventures. While he publicly denied any wrongdoing, the association damaged his credibility and by extension, the company’s reputation.
In an effort to regain stability, Sachin Dev Duggal resigned as CEO in March 2025, taking on a symbolic role on the board while the company attempted to restructure.
Collapse and Insolvency
By mid-2025, Builder.ai was facing insurmountable financial pressure. It defaulted on large debts to key technology partners and suppliers, and its remaining cash reserves were frozen by creditors. Unable to pay employees and fulfill obligations, the company initiated bankruptcy procedures across multiple jurisdictions and laid off most of its workforce.
Conclusion
The fall of Builder.ai serves as a stark reminder of how rapidly trust can erode in the tech industry. Despite its innovative ambitions and early successes, the company ultimately crumbled due to questionable leadership practices, financial opacity, and the personal baggage of its founder. What was once seen as the future of AI-driven software development ended in one of the most notable collapses in recent tech history.
