London-based artificial intelligence startup Builder.ai, once valued at over $1 billion and backed by major investors including Microsoft and Qatar’s sovereign wealth fund, has announced it will enter insolvency proceedings due to ongoing financial difficulties.
The company, which raised more than $450 million since its founding in 2016, informed employees of its financial struggles during a company-wide call on May 20, 2025. Builder.ai’s main operating unit, Engineer.ai Corporation, will appoint an administrator to manage the company’s affairs as it seeks to address historic challenges and past decisions that severely strained its financial position.
Builder.ai gained attention for its AI-powered platform designed to simplify app and website development, promising to make the process “as easy as ordering pizza.” Riding the wave of enthusiasm following the launch of ChatGPT, the startup raised a $250 million funding round in 2023. However, the company later revised its revenue forecasts downward by about 25% for the second half of 2024 and restated its 2023 revenues to $140 million amid concerns over inflated sales figures.
Leadership changes have marked recent months at Builder.ai. Founder Sachin Dev Duggal stepped down as CEO in February 2025 amid scrutiny and legal challenges unrelated to the company’s operations. Manpreet Ratia, previously a managing partner at investor Jungle Ventures, took over as CEO and led a significant restructuring that included cutting roughly 270 jobs, about 35% of its global workforce.
Despite efforts to stabilize the business, including securing a $50 million debt facility last year, Builder.ai’s cash reserves dwindled, leading to the decision to enter insolvency. The company emphasized its priority remains supporting employees, customers, and partners through this transition while working closely with the appointed administrators to explore all possible options for the business.
