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Harsh Dwivedi
•

Medial • 2m

Builder Ai went from unicorn to bankruptcy in 9 years. > founded in 2016 > promised to make apps “as easy as ordering pizza” > claimed to use AI to automate development > actually ran large teams of Indian coders behind the scenes > rebranded from Engineer ai to Builder ai > raised $500 million+ over multiple rounds > backed by Microsoft, SoftBank, Qatar, etc > got a $250 million Series D at $1.3 billion valuation > founder was the poster boy of Indian AI named to Fortune 40 Under 40 > gave TED talks on no-code and democratising tech > claimed $220 million revenue in 2024 > internal audit revealed real number: just $55 million > marketing promised AI, delivery relied on humans > whistleblowers exposed inflated sales and fake automation > lawsuits filed in India over loan fraud and money laundering > cofounder under investigation > then quietly stepped down as CEO in early 2025 > took a bizarre title: "Chief Wizard" > new CEO tried layoffs and cost cuts > $85M owed to AWS, $30M to Microsoft > creditors froze cash reserves > company couldn't pay employees > filed for insolvency in May 2025 Gave some real WeCrashed vibes.

14 Replies

Replies (14)

anurag gulati

Founder @ beoffline.... • 2m

These guys had it coming since the very beginning. I have been a victim when Builder.ai scammed me of Rs 9L. Also got interviewed by The guardian to uncover malpractices and frauds done by Builder.ai

2 Replies

Anirudh Gupta

CA Aspirant|Content ... • 2m

Builder ai contradicts it name😂😂😭

Anonymous 1
•

Wipro • 2m

They failed hard, but it did force a lot of folks to think about no-code differently. Even failures can move the space forward, especially here in india. Just that the trust factor gets damaged, in the public eye. But people forget things as easily as they receive it..so..

1 Reply

Atif

Building Something M... • 2m

first blusmart now this. Some founders are lack transparency and Ethics. Sad to see such potential getting wasted

1 Reply

SamCtrlPlusAltMan
•

OpenAI • 2m

India’s AI dream shatters once again smh

1 Reply

Anonymous 2

Hey I am on Medial • 2m

Finally someone calling out the "AI washing" that's been plaguing the startup ecosystem for years. Builder AI wasn't alone - half these "AI-powered" companies are just fancy UIs slapped on armies of offshore developers. The whole "democratizing tech" narrative was always BS when you're just arbitraging labor costs and calling it innovation.

1 Reply

Anonymous 3

Hey I am on Medial • 2m

That $85M AWS bill hits DIFFERENT when you realize it's not AI compute costs, it's infrastructure for managing thousands of human developers across multiple time zones, did they even have anything AI??

1 Reply

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