Builder.ai, the software development startup, has been declared in default by its key creditor Viola Credit. CEO Manpreet Ratia admitted the firm “cannot recover from historical challenges and past decisions,” revealing that its U.S. and U.K. accounts were once completely drained. The crisis deepens as former employees allege the company misrepresented sales figures to investors, with 2024 and 2025 revenue projections slashed to 35 million, respectively, in March.
Further scrutiny surrounds Builder.ai’s financial practices, including long-term reliance on audit firms closely tied to founder Saurabh Duggal. An internal audit in March 2024 uncovered inflated revenue reporting, compounding the company’s credibility crisis. The allegations raise questions about governance and transparency, particularly after Viola Credit’s $50 million debt lifeline last year failed to stabilize operations.
With dwindling cash reserves and mounting legal and financial pressures, Builder.ai’s survival is in doubt. Investors and clients are now assessing potential fallout, including legal repercussions from the alleged misreporting. The situation underscores the risks facing startups that prioritize rapid growth over sustainable financial controls.
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