Builder.ai Faked Business with Indian Firm VerSe to Inflate Sales, Sources Say
This alleged deception raises serious concerns about corporate governance, investor misrepresentation, and the lengths some startups may go to secure funding and market dominance.
Who is Builder.ai?
Builder.ai, founded in 2016 by entrepreneur Sachin Dev Duggal, is a London-based startup that provides AI-powered software development services. Its platform allows businesses to build custom applications using pre-built templates and automation, promising quicker and more cost-effective solutions compared to traditional coding.
Backed by investors such as SoftBank, Builder.ai has positioned itself as a leader in the “no-code/low-code” movement. In 2023, it secured over $250 million in Series D funding, boosting its valuation and drawing global attention.
The company has consistently promoted its rapid growth, boasting high-profile clients and large enterprise partnerships. However, new information challenges the legitimacy of some of these claims.
The Allegations: A Fabricated Partnership
Multiple former employees and individuals familiar with Builder.ai’s business dealings told reporters that the company falsely claimed a major partnership with VerSe Innovation, allegedly creating fake documentation and sales data to present to investors.
According to these sources:
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Builder.ai listed VerSe as a key enterprise customer in investor presentations and internal performance metrics.
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Revenue attributed to the VerSe “partnership” was exaggerated or entirely fabricated, with no meaningful business transactions occurring between the two companies.
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Internal sales dashboards featured phony deal IDs and invoices, giving the appearance of substantial enterprise activity.
One former employee described the situation as “a smoke-and-mirrors strategy designed to impress investors and potential clients.” Others noted that questioning the legitimacy of the VerSe deal internally was met with pushback or silence from upper management.
Why VerSe Innovation?
VerSe Innovation, based in Bengaluru, is one of India’s leading tech companies, best known for Dailyhunt, a multilingual content and news platform with over 350 million monthly active users. The company also owns Josh, a short video platform positioned as a TikTok competitor in India.
A partnership with VerSe would have added major credibility to Builder.ai’s enterprise portfolio. For investors evaluating Builder.ai’s potential in the lucrative Indian market, such a connection would seem to validate the startup’s strategy and scalability.
But VerSe has reportedly denied any official partnership with Builder.ai, and sources within VerSe suggest that while preliminary discussions may have occurred, no commercial deal was ever finalized.
Investor Deception?
If these allegations are true, the most serious implication is that Builder.ai may have misled its investors—intentionally inflating revenue projections and growth figures to secure larger funding rounds.
Investor decks reportedly featured VerSe as a case study in Builder.ai’s expansion into South Asia. According to leaked documents, Builder.ai claimed that VerSe was leveraging its platform to build internal tools and consumer-facing applications—claims now disputed by individuals close to both companies.
Falsifying customer data or overstating sales performance could constitute securities fraud or violation of financial disclosure laws, depending on the jurisdiction and the nature of the misstatements.
Legal experts note that if Builder.ai used these claims during funding negotiations or due diligence, investors may have grounds for legal action if the deception is proven.
Internal Culture of Pressure and Secrecy
Several former employees have painted a troubling picture of Builder.ai’s internal culture during its rapid growth phase. According to them:
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Sales teams were under extreme pressure to meet quarterly targets, often being encouraged to “get creative” with reporting.
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Questions about client validity or revenue sources were discouraged, and some teams had restricted access to back-end data to limit transparency.
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A culture of aggressive expansion and performative success created an environment where ethical concerns were often brushed aside.
One anonymous source said, “There was always this feeling that we had to look bigger than we were. It wasn’t just about building software; it was about building a narrative.”
Builder.ai’s Response
As of this writing, Builder.ai has not publicly responded to the allegations. Repeated requests for comment from journalists and tech news outlets have gone unanswered.
In the absence of a formal response, speculation continues to grow. Some industry analysts have urged Builder.ai to launch an independent internal investigation and issue a statement clarifying the situation to restore trust with investors and customers alike.
A Larger Pattern in Startup Culture?
The allegations against Builder.ai are not isolated in the tech industry. In recent years, multiple startups have been caught inflating user numbers, faking partnerships, or misrepresenting financials to secure funding. Notable examples include:
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Theranos, which falsified lab results to deceive investors and regulators.
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WeWork, whose valuation collapsed after misleading profitability claims.
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Frank, the student financial aid platform acquired by JPMorgan, whose founder allegedly faked user data.
These cases reveal a troubling trend: the pressure to scale at all costs often leads to ethical lapses and, in some cases, outright fraud.
The Risk to the Ecosystem
When startups misrepresent themselves, the consequences ripple across the tech ecosystem:
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Investors lose trust and become more cautious, reducing capital flow for genuine innovators.
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Competitors that play by the rules face unfair disadvantages.
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Customers and employees may suffer reputational or financial damage when scandals surface.
Transparency, accountability, and third-party audits are increasingly vital in an environment where hype can sometimes outpace honesty.
What’s Next?
If regulators or investors decide to pursue the allegations, Builder.ai may face legal scrutiny, reputational damage, or even financial penalties. Additionally, upcoming funding rounds or plans for expansion could be jeopardized.
For now, the tech community is watching closely. Will Builder.ai take responsibility and come clean? Or will it attempt to weather the storm with silence?
Industry watchers and ethics advocates are calling for a broader cultural shift—one that rewards integrity over illusion, and real impact over vanity metrics.
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Final Thoughts
The story of Builder.ai allegedly faking business with VerSe Innovation may still be unfolding, but it underscores a deep-rooted challenge in today’s startup economy: the temptation to fabricate success in pursuit of funding and fame.
Startups are built on ambition and bold vision—but without truth, even the most promising ventures can collapse under the weight of their own hype.
If Builder.ai is to survive and rebuild trust, it must address these claims transparently, conduct internal audits, and recommit to ethical leadership. Otherwise, it risks becoming yet another cautionary tale in a world hungry for fast success but often blind to the cost.