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Artificial intelligence is growing at a rapid pace, with startups promising breakthroughs in industries and attracting billions in investment. Among these was Builder.ai, a London-based company founded in 2016 by an Indian entrepreneur. Once valued at over $1.5 billion, it was known for its game-changing platform that could let anyone build custom apps quickly and affordably with the help of AI.

Yet in 2025, Builder.ai collapsed dramatically, filing for bankruptcy across multiple countries and laying off nearly 80% of its workforce. What was once a celebrated unicorn has become a cautionary tale, exposing not only the risks of hype-driven growth in AI but also inflicting reputational damage on Indian founders in the global startup ecosystem.

The Rise: Big Promises, Big Investors

Builder.ai branded itself as a no-code/low-code app development platform, where its AI assistant “Natasha” would guide customers in creating apps without technical expertise. The pitch was simple and attractive: app development was made “as easy as ordering pizza.” The story resonated with major investors. Backed by SoftBank, Microsoft, and Qatar’s sovereign wealth fund, Builder.ai raised more than $450 million. It scaled rapidly, positioning itself as one of Europe’s most promising AI startups.

The Cracks Appear

Behind the glamour, the first cracks appeared as early as 2019, when The Wall Street Journal reported that Builder.ai’s platform depended far more on human engineers than on the AI automation it advertised. In reality, the much-hyped AI assistant “Natasha” was often just “a guy instead”, i.e., skilled developers in India manually writing code behind the scenes on whose backs the company expanded aggressively. 

The real blow came from Builder.ai’s finances. The company was accused of inflating revenue figures by 300%, with alleged use of round-tripping tactics involving fake invoices that inflated financials.  While it publicly projected revenues of $220 million in 2024, its actual figure was closer to $55 million. When this reality surfaced, investor confidence was lost quickly, and the company’s liabilities ballooned to nearly $100 million, with less than $ 10 million in assets remaining. 

Collapse and Legal Scrutiny

By 2025, the company’s foundations had crumbled. The founder stepped down as CEO but retained the unusual title of “Chief Wizard.” Massive debts to AWS, Microsoft, and other partners mounted into the hundreds of millions. Assets were seized, and the company filed for bankruptcy in the U.S., UK, India, and the UAE.

For clients, the collapse meant abandoned projects. For employees, around 1,000 of them, it meant sudden unemployment. And for investors, it was a devastating loss. The Securities and Exchange Commission and U.S. Attorney’s Office in New York have since launched investigations into potential fraud and investor misrepresentation.

Reputational Damage: Impact on Indian Founders

Perhaps the most enduring consequence of Builder.ai’s downfall is the hit to the credibility of Indian founders on the global stage.

For years, Indian entrepreneurs have earned trust in global tech circles, with leaders heading companies from Google to Microsoft. Indian-led startups abroad were viewed as reliable, innovative, and growth-driven. Builder.ai’s collapse disrupts this narrative.

The allegations of inflated revenue, AI exaggeration, and questionable governance risk reinforcing skepticism among global investors regarding Indian organisational ethics. For other Indian founders seeking international capital, the road has now become tougher: stricter due diligence, harsher scrutiny of claims, and slower trust-building.

This reputational damage arrives at a critical time when India is positioning itself as a global hub for AI and leads the world in AI skill penetration. Rather than highlighting the strength of India’s entrepreneurial and talent ecosystem, the fall of Builder.ai has drawn attention to the risks of overpromising and underdelivering.

Conclusion

The fall of Builder.ai is more than the bankruptcy of one AI unicorn. It is a warning to companies against chasing hyper growth fueled by the riding of the AI wave. While the company’s downfall exposed flaws in governance and accountability, its deeper impact lies in how it dented trust. To drive AI and technology innovation, startups must move beyond flashy valuations and commit to authentic innovation, transparency, and financial integrity.

References

• https://www.moodys.com/web/en/us/insights/lending/moodys-early-warning-in-action-builder-ai.html#:~:text=Despite%20marketing%20itself%20as%20an,fake%20invoices%20that%20inflated%20financials. 
• https://today-innovation.webflow.io/unveiling-the-power-of-natasha-an-ai-assistant-of-builder-ai-to-revolutionize-app-generation 
• https://finance.yahoo.com/news/builder-ais-shocking-450m-fall-170009323.html
• https://www.pib.gov.in/PressReleasePage.aspx?PRID=2108810 
• https://www.cnbctv18.com/technology/how-a-london-based-startups-artificial-ai-gambit-backfired-ws-l-19613692.htm# 

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Introduction

Holi 2025 is just around the corner. In fact, in the Braj region, Mathura and Vrindavan, the celebrations have already begun, starting from Basant Panchami on 2nd February 2025. Temples in Vrindavan are sprinkling flowers on devotees, creating mesmerising scenes with the spirit of devotion. While cities like Delhi, Bangalore, Mumbai, etc., are all set, with pre-bookings for Holi events, parties and music festivals. 

However, in the current digital era, cybercriminals attempt to conduct manipulative campaigns to deceive innocent people. They attempt to send fake cashback offers, freebies, lucrative deals, giveaways, and phishing scams under the guise of Holi deals and offers. The upcoming festival of colors requires you to know the warning signs so you can remain alert and safeguard against digital scams.

How Scammers Might Target You 

Holi is a time for joy, colors, and celebrations, but cybercriminals see it as the perfect opportunity to trick people into falling for scams. With increased online shopping, event bookings, and digital transactions, scammers exploit the festive mood to steal money and personal information. Here are some common Holi-related cyber scams and how they operate:

1. Exclusive Fake Holi Offers

Scammers send out promotional messages via WhatsApp, SMS, or email claiming to offer exclusive Holi discounts. For example, you might receive a message like:
"Get 70% off on Holi color packs! Limited-time deal! Click here to order now."
However, clicking the link leads to a fraudulent website designed to steal your card details or make unauthorized transactions.

2.  Fake Holi Cashback Offers

You may get an SMS that reads:
"Congratulations! You’ve won ₹500 cashback for your Holi purchases. Claim now by clicking this link."
The link may take you to a phishing page that asks for your UPI PIN or bank login credentials, allowing scammers to siphon off your money.

3. Fake Quizzes to Win Freebies

Scammers circulate links to Holi-themed quizzes or surveys promising free gifts like branded clothing, sweets, or smart gadgets. These often ask users to enter personal details such as phone numbers, email addresses, or even Aadhaar numbers. Once entered, the scammers misuse this information for identity theft or further phishing attempts.

4. Fake Social Media Giveaways

Many fraudsters create fake Instagram and Facebook pages mimicking well-known brands, announcing contests with tempting prizes. For example:
"Holi Giveaway! Win a free Bluetooth speaker or chance to win smartphone by following us and sending a small registration fee!"
Once you pay, the page disappears, leaving you with nothing but regret.

5. Targeted Phishing Scams

During Holi, phishing attempts surge as scammers disguise themselves as banks, e-wallet services, or e-commerce platforms. You might receive an email with a subject like:
"Urgent: Your Holi order needs confirmation, update your details now!"
The email contains a fake link that, when clicked, prompts you to enter sensitive login information, which the scammers then use to access your account.

6. Clickbait Links on Social Media

Cybercriminals circulate enticing headlines such as:
"This New Holi Color Is Banned – Find Out Why!"
These links often lead to malware-infected pages that compromise your device security or steal browsing data.

7. Bogus Online Booking Platforms

With many people looking for Holi event tickets or holiday stays, scammers set up fake booking websites. Imagine you come across a site advertising "Holi Pool Party – Entry Just INR 299!" you eagerly make the payment, only to find out later that the event never existed.

How to Stay Safe This Festive Season

• Verify offers directly from official websites instead of clicking on random links.
• Avoid sharing personal or banking details on unfamiliar platforms.
• Look for HTTPS in website URLs before making any payments.
• Be cautious of unsolicited messages, even if they appear to be from known contacts.
• If an offer seems too good to be true, it it is likely a scam or deception.

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Conclusion:

As Holi 2025 approaches, make sure your online security remains a priority. Keep an eye on potential frauds that attempt to take advantage of the festive seasons like Holi. Protect yourself against various cyber threats. Before engaging with any Internet content, prioritize the verification of sources. Let us safeguard our celebrations with critical cyber security precautions. Wishing you all a cyber-safe and Happy Holi 2025!

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Introduction

Conversations surrounding the scourge of misinformation online typically focus on the risks to social order, political stability, economic safety and personal security. An oft-overlooked aspect of this phenomenon is the fact that it also takes a very real emotional and mental toll on people. Even as we grapple with the big picture questions about financial fraud or political rumors or inaccurate medical information online, we must also appreciate the fact that being exposed to misinformation and becoming aware of one’s own vulnerability are both significant sources of mental stress in today’s digital ecosystem.

Inaccurate information causes confusion and worry, which has negative consequences for mental health. Misinformation may also impair people's sense of well-being by undermining their trust in institutions, authority figures, and their own judgment. The constant bombardment of misinformation can lead to information overload, wherein people are unable to discriminate between legitimate sources and misleading content, resulting in mental exhaustion and a sense of being overwhelmed by the sheer volume of information available. Vulnerable groups such as children, the elderly, and those with pre-existing health conditions are more sensitive or susceptible to the negative effects of misinformation.

How Does Misinformation Endanger Mental Health?

Misinformation on social media platforms is a matter of public health because it has the potential to confuse people, lead to poor decision-making and result in cognitive dissonance, anxiety and unwanted behavioural changes.

Unconstrained misinformation can also lead to social disorder and the prevalence of negative emotions amongst larger numbers, ultimately causing a huge impact on society. Therefore, understanding the spread and diffusion characteristics of misinformation on Internet platforms is crucial.

The spread of misinformation can elicit different emotions of the public, and the emotions also change with the spread of misinformation. Factors such as user engagement, number of comments, and time of discussion all have an impact on the change of emotions in misinformation. Active users tend to make more comments, engage longer in discussions, and display more dominant negative emotions when triggered by misinformation. Understanding the evolution pattern of emotions triggered by misinformation is also important in view of the public’s emotional fluctuations under the influence of misinformation, and social media often magnifies the impact of emotions and makes emotions spread rapidly in social networks. For example, the sentiment of misinformation increases when there are sensitive topics such as political elections, viral trending topics, health-related information, communal and local information, information about natural disasters and more. Active misinformation on the Internet not only affects the public's psychology, mental health and behavior, but also has an impact on the stability of social order and the maintenance of social security.

Prebunking and Debunking To Build Mental Guards Against Misinformation

As the spread of misinformation and disinformation rises, so do the techniques aimed to tackle their spread. Prebunking or attitudinal inoculation is a technique for training individuals to recogniseand resist deceptive communications before they can take root. Prebunking is a psychological method for mitigating the effects of misinformation, strengthening resilience and creating cognitive defenses against future misinformation. Debunking provides individuals with accurate information to counter false claims and myths, correcting misconceptions and preventing the spread of misinformation. By presenting evidence-based refutations, debunking helps individuals distinguish fact from fiction.

What do health experts say about online misinformation?

“In the21st century, mental health is crucial due to the overwhelming amount of information available online. The COVID-19 pandemic-related misinformation was a prime example of this, with misinformation spreading online, leading to increased anxiety, panic buying, fear of leaving home, and mistrust in health measures. To protect our mental health, it is essential to cultivate a discerning mindset, question sources, and verify information before consumption. Fostering a supportive community that encourages open dialogue and fact-checking can help navigate the digital information landscape with confidence and emotional support. Prioritising self-care routines, mindfulness practices, and seeking professional guidance are also crucial for safeguarding mental health in the digital information era.”

In conversation with CyberPeace ~ Says Dubai-based psychologist, Aishwarya Menon, (BA,in Psychology and Criminology from the University of Westen Ontario, London and MA in Mental Health and Addictions (Humber College, University of Guelph),Toronto.

CyberPeace Policy Recommendations:

1)     Countering misinformation is everyone's shared responsibility. To mitigate the negative effects of infodemics online, we must look at developing strong legal policies, creating and promoting awareness campaigns, relying on authenticated content on mass media, and increasing people's digital literacy.

2)     Expert organisations actively verifying the information through various strategies including prebunking and debunking efforts are among those best placed to refute misinformation and direct users to evidence-based information sources. It is recommended that countermeasures for users on platforms be increased with evidence-based data or accurate information.

3)     The role of social media platforms is crucial in the misinformation crisis, hence it is recommended that social media platforms actively counter the production of misinformation on their platforms. Local, national, and international efforts and additional research are required to implement the robust misinformation counterstrategies.

4)     Netizens are advised or encouraged to follow official sources to check the reliability of any news or information. They must recognise the red flags by recognising the signs such as questionable facts, poorly written texts, surprising or upsetting news, fake social media accounts and fake websites designed to look like legitimate ones. Netizens are also encouraged to develop cognitive skills to discern fact and reality. Netizens are advised to approach information with a healthy dose of skepticism and curiosity.

Final Words:

It is crucial to protect mental health by escalating and disturbing the rise of misinformation incidents on various subjects, safeguarding our minds requires cognitive skills, building media literacy and verifying the information from trusted sources, prioritising mental health by self-care practices and staying connected with supportive authenticated networks. Promoting prebunking and debunking initiatives is necessary. Netizen scan protect themselves against the negative effects of misinformation and cultivate a resilient mindset in the digital information age.

References:

1. https://www.hindawi.com/journals/scn/2021/7999760/
2. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8502082/

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