London-based unicorn Builder.ai has announced that it is entering insolvency proceedings despite backing from global giants Microsoft and SoftBank.
The AI-powered software platform released a statement on LinkedIn, with comments turned off on the post, just weeks after its founder Sachin Dev Duggal stepped down as CEO.听
鈥�Today, Engineer.ai Corporation, known as Builder.ai, will be entering into insolvency proceedings and will appoint an administrator to manage the company鈥檚 affairs,鈥� the post read.
鈥淒espite the tireless efforts of our current team and exploring every possible option, the business has been unable to recover from historic challenges and past decisions that placed significant strain on its financial position.
鈥淥ur immediate priority is to support our employees, customers, and partners through this difficult time. We will work closely with the appointed administrators to ensure an orderly process and to explore all available options for parts of the business, where possible.
鈥淲e want to extend our sincere gratitude to our employees for their commitment and hard work, to our customers for their loyalty, and to our partners and suppliers for their support over the years.鈥�
The news comes just over two months after Duggal stepped down to be replaced as CEO by Manpreet Ratia, who revealed a whole host of problems, saying that he had been attempting to lead the well-backed business on 鈥榸ero dollars鈥�.听
The company, which received around 拢450m in investment, claimed to be able to build software and apps up to 6x faster and 70% cheaper than traditional human teams, without users needing to 鈥榮peak tech鈥�.
However, worrying signs emerged before the announcement of bankruptcy.
A report from 2024 in the Financial Times included testimony from former employees complaining at former CEO Duggal鈥檚 leadership style, company culture and its ability to deliver on time.
The news will affect thousands of people, including the company鈥檚 1,000+ workforce.听
Adrian van Rensburg, an enterprise account executive at the firm, took to LinkedIn to write: 鈥�Like many of my incredibly talented colleagues, I鈥檝e been impacted by the unexpected closure of Builder.ai.听
鈥淚t鈥檚 a tough and emotional moment 鈥� not just for me personally, but for the entire team that poured so much into building something meaningful.
鈥淚 also want to extend a heartfelt thank you and sincere apologies to our customers and partners. We deeply valued your trust, and I鈥檓 truly sorry for the disruption this sudden news may have caused. Supporting your businesses was a privilege.鈥�
Amit Kumar, a senior brand and motion graphics designer, added: 鈥淚t鈥檚 been a surreal few days 鈥� Builder.ai has filed for insolvency, and like many others, I鈥檓 now navigating the unexpected.
鈥淥ver the years, I鈥檝e poured myself into building meaningful brand stories, motion-led experiences, and intuitive design systems that speak to both users and business goals.听
鈥淚t鈥檚 tough to say goodbye, but I鈥檓 proud of the work, the growth, and the people I鈥檝e shared it with.鈥�
Ben Stokes-backed platform extends Lancashire CC partnership