VerSe Innovation (the parent company of Dailyhunt and Josh) is currently under scrutiny following allegations of financial misconduct involving London-based AI startup Builder.ai. According to a report by Bloomberg, both companies engaged in a practice known as ’round-tripping’, wherein they allegedly issued invoices to each other for services that were not actually provided.
This trick allegedly aimed to inflate their respective revenue figures artificially so that they could show a more favourable financial position to investors and stakeholders. As per reports, Builder.ai provided cloud computing services to VerSe Innovation, billing around $80 million for the period between 2020 and 2025. In return, VerSe offered advertising services to Builder.ai valued at about $50 million during the same timeframe.
This exchange of services between the two companies involved large sums and raised questions about the nature of their transactions. Reports suggest the two companies coordinated invoice timings and amounts (close to $60 million during 2021-24) to avoid drawing attention, while ultimately spending roughly equal sums on each other’s services.
Notably, Builder.ai (which has received backing from major investors including Microsoft and SoftBank) filed for bankruptcy in May 2025 after one of its major lenders took control of most of its cash. The company reportedly admitted to overstating its sales to creditors, which led US prosecutors to issue summonses demanding detailed financial records.
Meanwhile, Builder.ai has denied any misconduct, claiming that its financial practices have been transparent and in compliance with legal standards. Similarly, VerSe Innovation has denied the allegations, stating that it has not engaged in any fraudulent activities and maintains that all its financial transactions are legitimate.
This latest development comes as the Bengaluru-based VerSe Innovation has recently faced major controversies and challenges impacting its operations and reputation. For example, in April 2025, audit firm Deloitte reportedly identified significant weaknesses in VerSe’s internal financial controls. The audit revealed that VerSe lacked appropriate internal controls over critical financial processes, including the selection and evaluation of suppliers, the approval of purchase orders and invoices, and payment procedures.
Deloitte also pointed out flaws in the management of virtual assets, including insufficient oversight in customer acceptance, pricing, and user access controls. However, despite these findings, Deloitte maintained a ‘true and fair’ opinion on VerSe’s consolidated financial statements for FY24.
In parallel, earlier reports revealed that Sachin Dev Duggal (founder of Builder.ai) was named in a separate money laundering investigation linked to the now-defunct Indian conglomerate Videocon. The Enforcement Directorate (ED) has been probing transactions from 2008 to 2012, during which funds were allegedly routed from Videocon to an Indian company founded by Duggal and then to Videocon’s overseas entities.
