Summary:
Builder.ai accused of faking sales with Indian startup VerSe Innovation to inflate revenue
Alleged "round-tripping" scheme involved mutual billing without actual exchange of services
VerSe co-founder denies allegations, calling them "baseless and false"
Builder.ai, an artificial intelligence startup that recently announced plans to declare bankruptcy, has been accused of faking business dealings with Indian social-media startup VerSe Innovation to falsely inflate its sales. This revelation comes from documents reviewed by Bloomberg and individuals with direct knowledge of the matter.
The Alleged Scheme
Between 2021 and 2024, the two companies allegedly engaged in a practice known as "round-tripping", where they billed each other for roughly the same amounts. This was done to inflate revenue figures presented to investors, with many of these transactions not involving any actual exchange of products or services.
VerSe's Response
Umang Bedi, a co-founder of VerSe, vehemently denied the allegations, calling them "absolutely baseless and false". He stated that VerSe is not in the business of inflating revenues and would not record expenses or bill for services not received or provided.
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