VerSe Innovation Denies Allegations of Financial Misconduct

Bengaluru-based tech unicorn VerSe Innovation, the parent company of Dailyhunt and Josh, has firmly denied allegations of revenue manipulation and financial misconduct involving its dealings with the now-bankrupt AI startup Builder.ai. The company described the accusations as “false, defamatory, and irresponsible,” asserting that its $80 million in transactions with Builder.ai over the last three years were for legitimate business services.

Reports, including one by Bloomberg, alleged that Builder.ai engaged in “round-tripping” — inflating revenues through reciprocal transactions lacking real service delivery — to mislead investors. The once $1.5 billion-valued Builder.ai recently filed for bankruptcy after a creditor seized its funds and is now under scrutiny from U.S. prosecutors.

VerSe co-founder Umang Bedi rejected the allegations in an interview with Moneycontrol, labeling them “factually incorrect and baseless.” He affirmed that all services were rendered and payments exchanged were for genuine deliverables. Supporting documentation, including email records and Jira tickets, was presented to validate their partnership dating back to 2021.

Bloomberg reported roughly $60 million in application development revenues for Builder.ai from VerSe, with reciprocal payments made to VerSe and its subsidiary Quark Media Tech for marketing services. However, Bedi denied any synchronization of payments or non-delivery of services.

Builder.ai’s founder Sachin Dev Duggal resigned in February 2025. The company had raised over $450 million from major backers, including Microsoft and Qatar Investment Authority—both of whom are also investors in VerSe.

While Deloitte noted some internal control issues in VerSe’s latest audit, the firm approved the financials. VerSe is currently exploring a potential IPO.