Sources: 
Builder.ai, a high-profile AI startup once valued at approximately
$1.5 billion, is embroiled in controversy amid its bankruptcy proceedings. The company allegedly inflated its sales figures by engaging in a practice known as
'round-tripping' with VerSe Innovation, where both firms billed each other for similar amounts without actual services being rendered.
This alleged financial maneuver reportedly led Builder.ai to overstate its projected 2024 sales to creditors by
300%, a factor that influenced lenders to seize the company’s funds, according to Bloomberg.
VerSe, a Bengaluru-based consumer tech company known for its news aggregation app Dailyhunt, which boasts over
350 million monthly users, has been named in the allegations. However, VerSe co-founder
Umang Bedi has categorically denied any involvement in inflating sales figures.
Builder.ai has declined to comment on the allegations. The collapse of Builder.ai marks one of the most significant failures in the AI startup space since the launch of ChatGPT, which had sparked a global investment surge.
“VerSe co-founder Umang Bedi denies these allegations,” emphasizing the company’s stance against the claims.
The situation highlights the risks and scrutiny faced by AI startups amid rapid growth and investment pressures.
As the investigation continues, the reputations of both companies remain under close watch, with the broader tech community observing the fallout from this high-profile bankruptcy case.
Sources: VerSe co-founder Umang Bedi denies allegations that Builder.ai inflated sales figures through 'round-tripping' transactions amid Builder.ai's bankruptcy. Builder.ai, once valued at $1.5 billion, reportedly overstated 2024 sales projections by 300%, prompting lenders to seize its funds. VerSe, based in Bengaluru, has not been implicated.
