Overview

• Builder.ai’s parent company, Engineer.ai Corporation, has entered formal insolvency proceedings and appointed an administrator to manage its affairs.
• The collapse was triggered by Viola Credit’s seizure of $37 million from Builder.ai’s accounts, leaving the company with only $5 million, which is frozen in Indian accounts due to currency restrictions.
• The company has laid off most of its employees as it struggles to address financial obligations, including $85 million owed to Amazon and $30 million to Microsoft.
• Builder.ai achieved unicorn status in 2023 after a $250 million funding round led by the Qatar Investment Authority and a strategic partnership with Microsoft, but later faced scrutiny over inflated sales metrics and governance issues.
• CEO Manpreet Ratia, who replaced founder Sachin Dev Duggal earlier this year, stated that efforts to stabilize the company were unsuccessful due to historic financial challenges and creditor actions.