Sachin Dev Duggal, Founder of Builder.ai, Under Investigation

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Key Takeaways

1Sachin Dev Duggal, founder of Builder.ai, is accused by India of receiving misappropriated funds from Videocon, a bankrupt electronics giant.

2Builder.ai, founded in 2016, raised over $500 million before going bankrupt in May 2025, following fraud allegations.

3The investigation focuses on Nivio, a previous startup of Duggal, involved in suspicious loans with Videocon.

💡Why it matters — This case could impact Duggal's reputation and influence the perception of AI startups funded by giants like SoftBank and Microsoft.

Sachin Dev Duggal in Legal Turmoil

Sachin Dev Duggal, the founder of Builder.ai, is at the center of a judicial investigation in India, accused of benefiting from embezzled funds from the bankrupt electronics conglomerate Videocon, which shut down in 2018. The Enforcement Directorate of India has filed a criminal complaint in New Delhi, naming Duggal as the "key beneficiary" of a complex scheme involving fund transfers through offshore entities.

Builder.ai: A Meteoric Rise Followed by a Fall

Founded in 2016, Builder.ai aimed to revolutionize app and website development through artificial intelligence. The company successfully raised over $500 million from prestigious investors such as SoftBank and Microsoft. However, in May 2025, Builder.ai went bankrupt, following accusations of artificially inflated sales and revenue forecasts. Duggal, who served as CEO and later as "chief wizard officer," has consistently denied these allegations.

Nivio and Suspicious Transactions

The current investigation is also looking into Nivio, a previous cloud computing venture founded by Duggal. Indian authorities allege that Videocon provided interest-free loans to Nivio's Indian branch without a formal agreement. A loan contract was signed in May 2011, followed by an investment of 3.7 million CHF from an offshore entity of Videocon into Duggal's Swiss company, nHoldings SA, despite its loss-making status. Over the following three years, an additional amount of $3.7 million is said to have been funneled to nHoldings and to Duggal personally through a five-step offshore chain.

Reactions and Future Developments

Duggal was first named in this case in March 2024. When contacted by Sifted, a representative for Duggal stated that they could not comment on the complaint regarding Nivio until it had been reviewed by a judge. Additionally, U.S. prosecutors have demanded that Builder.ai provide internal data, including client lists and accounting policies, but the status of this investigation remains uncertain.

Towards a New Beginning?

Despite these upheavals, Duggal appears ready to bounce back. In September 2025, he informed investors of his plan to launch a new AI startup called SecondBrain, according to a source cited by Sifted.