Artificial Intelligence Startup Builder.Ai falsely propagated the business with India’s social-media startups and innovation for years to incorrectly increase its sales. Verse Innovation, Content Agriculture DailyHhant and short-video platform are the parent company of Josh. Documents reviewed by Bloomberg suggest that the two companies regularly sent a bill of almost identical amount to each other between 2021 and 2024, known as “round-tripping”. Builder.ai has recently announced a plan to declare itself bankrupt.
People who are aware of the case say that Builder.AI introduced revenue data to investors. There are many cases when products and services were given to any company in reality for these payments.
Talk of collusion in a period of 4 years
According to the people who are aware of the case, Builder.Ai received a revenue of about $ 60 million for services like application development from Verse over a period of 4 years. In return, AI startup sent funds to Verse and its subsidiary Quark Media Tech for services like marketing. This is revealed by documents. It seems that the two companies made a difference in the timing and amount of the challan to avoid suspicion, but the two companies spent almost the same amount.
Verse’s co-founder told allegations
According to a report by Bloomberg, Verse’s co-founder Umang Bedi says that it is absolutely baseless and false that his company must have recorded such expenses or a bill of services that he had not really received. He said in an interview, “We are not a company that is in the business of increasing revenue.”
Bedi says that Verse started working with Builder.ai around 2021, but denied that the companies were working in connivance or failed to offer some service. Bedi said, “No partner has any kind of corruption in terms of timing of any payment.”
Sometimes there was a big name in AI Builder.ai
Builder.ai’s valuation was once around $ 1.5 billion. This is the most high-profile AI startup to be closed since the launch of CHATGPT and the major boom in investment in AI. London -based Builder.AI introduced his tech as a way to create an app less or without coding. In early May, it said that after seizing most of his cash by a major creditor, he planned to file for bankcision.
Earlier Bloomberg’s report stated that Builder.ai increased its estimated sales of 2024 to 300% for creditors, which contributed to the company’s decision to seize the company’s fund. American Prosecutors have demanded the startup to hand over the list of financial statements, accounting policies and their customers as part of the summons.
Builder.ai raised more than $ 45 million from investors. Investors include Insight Partners and Qatar Investment Authority or QIA, one of the largest sovereign wealth funds. Microsoft Corp invested in 2023.
