Builder.ai founder and ex-CEO Sachin Dev Duggal made at least $20 million selling his shares before the company collapsed. The Microsoft-backed startup promised AI-powered app development and raised over $500 million from investors. Duggal’s firm, SD Squared Ventures, sold shares starting just before Builder.ai got VC funding nearly seven years ago.
Most sales wrapped up before Builder.ai’s $250 million funding round in 2023, which valued the company above $1 billion and made it a UK tech “unicorn.” Investors included Insight Partners, SoftBank’s DeepCore, and Qatar Investment Authority.
This month, Builder.ai filed for US bankruptcy after an internal probe found likely bogus sales and slashed revenue estimates to just 25% of previous claims. Despite this, SD Squared Ventures stayed the largest shareholder with over 15% at the time of collapse. 
Hong Kong’s Ion Pacific also loaned Duggal money secured against his shares using a “structured transaction” — a debt-like deal. Ion Pacific bought $6 million in Builder.ai shares from other investors in late 2022. The firm, which offers “personal liquidity solutions” to founders, says it never had more than $10 million exposed and reduced that before the collapse.
Duggal reportedly pitched investors on buying back Builder.ai out of insolvency, requiring less than $10 million in initial funding.
There is no evidence Duggal broke any rules selling or borrowing on his shares. He declined to comment.
The Financial Times reported alleged revenue inflation, like fake discounts and circular deals, under Duggal’s watch. His lawyers called those claims “serious inaccuracies.”
The US Attorney’s Office in Southern New York also sought documents from Builder.ai on financials and customer dealings just weeks before the bankruptcy.
Michael Joseph, Ion Pacific co-CEO, said:
“Our funds never had more than $10mn in exposure” to Builder.ai and had “reduced this significantly” before the company collapsed.
