FaceOff: VerSe Innovation's Financial Dealings

Bengaluru-based tech company VerSe Innovation, owner of Dailyhunt and Josh, has strongly denied allegations of financial misconduct in its dealings with the now-bankrupt AI startup Builder.ai. The company labeled the claims “baseless and defamatory,” asserting that $80 million in transactions over the past three years were for legitimate services.

A Bloomberg report alleged that Builder.ai engaged in “round-tripping”—the artificial inflation of revenue through reciprocal, non-substantive transactions—to deceive investors. Builder.ai, once valued at $1.5 billion, recently filed for bankruptcy after a creditor seized its assets and is now under U.S. investigation.

VerSe co-founder Umang Bedi rejected the accusations in an interview with Moneycontrol, calling them “factually incorrect.” He presented supporting evidence, including email and Jira records, to confirm their business relationship since 2021. Bedi clarified that Builder.ai provided VerSe with around $60 million in application development services, while VerSe and its subsidiary Quark Media Tech paid for marketing support—denying any correlation in timing or improper conduct.

Builder.ai’s founder, Sachin Dev Duggal, stepped down in February 2025. Despite minor internal control concerns flagged by Deloitte, VerSe’s financials were cleared. The company remains focused on transparency as it prepares for a potential IPO.