Today Microsoft-backed Builder.ai has announced that it will enter insolvency proceedings.
The company confirmed to the Financial Times that its main unit, Engineer.ai Corporation, “will be entering into insolvency proceedings and will appoint an administrator to manage the company’s affairs”.
UK unicorn Builder.ai developed an AI-powered composable software platform that integrates Lego-like reusable features with Building Blocks automation to minimise human effort and produce apps at a fraction of the cost and time of traditional software development.
Having raised over $450 million in funds, with backers including Qatar’s sovereign wealth fund, Builder.ai recently revised its sales figures provided to investors. In addition to this, the company has engaged auditors to inspect its accounts for the previous two years.
In March, Sachin Dev Duggal stepped down as CEO (but kept the title of “chief wizard”), and in April the company underwent “significant restructuring,”cutting approximately 270 employees from its global staff of around 770. This 35 per cent reduction was part of a broader restructuring initiative led by new CEO Manpreet Ratia,
Ratia, who is also managing partner at Builder.ai investor Jungle Ventures, also said at the time that the startup had lowered the revenues it had reported for 2023 to $140 million, and had to restate its 2023 accounts owing to Middle East resellers who fell short of revenue expectations.
In a statement today, the company asserted that it could not recover from historic challenges and past decisions that significantly strained its financial position.
Its immediate priority is to support its employees, customers, and partners, and work closely with the appointed administrators.
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