Builder.ai, a UK-based artificial intelligence startup once hailed as a rising star in the no-code app development industry, has filed for bankruptcy — a shocking turn for a company that raised over $450 million, was backed by Microsoft, and promised to revolutionize how software gets built.
Builder.ai operated at the intersection of no-code platforms and AI-powered software development, offering businesses the ability to build custom apps without writing code. This placed it in direct alignment with the growing no-code/low-code development trend that’s been surging across industries.
However, recent developments have revealed cracks that investors and analysts can no longer ignore:
Viola Credit, a lender that provided $50 million in debt financing, has seized $37 million from the company’s accounts, citing undisclosed reasons.
The remaining $5 million, stuck in Indian bank accounts due to regulatory restrictions, is inaccessible for payroll or operations.
CEO Manpreet Ratia has confirmed mass layoffs, with most of the workforce let go.
