Microsoft-backed UK startup Builder.ai has undergone a “significant restructuring”, under its new CEO, as it restates its previous financial accounts.
The AI startup, whose founder Sachin Dev Duggal stepped down in March this year, has cut its global headcount by around 270, from around 770, according to sources cited by the Financial Times.
The restructure has been undertaken following the appointment of new CEO Manpreet Ratia, who did not confirm specific numbers but said the UK-headquartered AI firm had undergone a “significant restructuring”.
Builder.ai did not respond to a request to confirm the cuts.
Builder.ai, which leverages AI to develop apps, is understood to have offices in the UK, India and Singapore.
On LinkedIn, at least one Builder.ai employee based in India recently changed their status to looking for work.
Ratia, who is also managing partner at Builder.ai investor Jungle Ventures, also said that the startup had lowered the revenues it had reported for 2023 to $140m, but did not reveal the original revenue figure. The CEO said it had to restate its 2023 accounts owing to Middle East resellers who fell short of revenue expectations.
The CEO also confirmed a report in Bloomberg that it had reduced its forecasted revenue for the second half of 2024 by 25 per cent.
It has also appointed accountancy firm BDO to undertake a company-wide audit of its accounts between 2023 and 2027.
Ratia told the FT: “We’ve got a great business and, trust me, I wouldn’t be sitting here talking to you if I did not believe in the business. Do we have problems? Absolutely. Any organisation who comes and says everything is hunky-dory is probably lying.”
Builder.ai’s customers include JP Morgan Chase and it has received around $450m in investment, including funds from Qatar Investment Fund, which led its £200m Series D in 2023, and Microsoft and SoftBank. The London-based startup has been valued at $1bn.
Duggal remains on the startup’s board and in his role as chief wizard.
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