VerSe Innovation Scrutiny: Financial Misconduct Allegations

VerSe Innovation, the parent company behind the popular platforms Dailyhunt and Josh, is currently embroiled in controversy with serious allegations of financial misconduct, particularly involving its dealings with the London-based AI startup Builder.ai. Reports from Bloomberg suggest that both companies participated in a practice called ’round-tripping’, where they allegedly exchanged invoices for services not actually provided. By doing so, they appeared to inflate their revenue figures artificially, which could mislead investors and stakeholders about their financial health. This situation raises significant ethical questions about the integrity of their financial reporting and the potential legal ramifications of these practices if substantive evidence is uncovered to validate the allegations.

The magnitude of the financial entanglement between VerSe Innovation and Builder.ai is staggering, with reports detailing that Builder.ai charged VerSe approximately $80 million for cloud computing services, while VerSe reciprocated with $50 million worth of advertising services. Such extensive inter-company transactions have drawn scrutiny regarding their legitimacy, especially considering recent revelations from Deloitte’s audit that highlighted crucial weaknesses in VerSe’s financial controls. This predicament becomes even more complicated when considering Builder.ai’s subsequent bankruptcy filing in May 2025, which was accompanied by accusations of overstating sales to creditors. As investigations by US prosecutors continue into the alleged financial discrepancies, both VerSe and Builder.ai are firmly denying any wrongdoing, yet the cloud of suspicion looms large over their operations, complicating their futures.

Overview of Allegations Against VerSe Innovation

VerSe Innovation, the parent entity of Dailyhunt and Josh, has found itself under intense scrutiny following allegations of financial misconduct linked to its dealings with London-based AI startup Builder.ai. Investigative reports suggest that both companies engaged in ’round-tripping’—a practice where they issued invoices to each other for services not honestly rendered. This fraudulent strategy ostensibly aimed to inflate revenue figures artificially, portraying a healthier financial outlook to investors, stakeholders, and regulators.

The implications of such practices are significant, raising concerns about the integrity of financial reporting in the tech sector. Stakeholders might question the sustainability of financial health and the transparency of operations at VerSe Innovation. The fallout from these revelations could lead to stricter oversight and scrutiny of financial dealings not just for VerSe and Builder.ai, but across the industry.

Summary

VerSe Innovation, the parent company of Dailyhunt and Josh, is under scrutiny for alleged financial misconduct involving the London-based AI startup Builder.ai. Reports indicate that both companies engaged in ’round-tripping’, issuing invoices for non-rendered services to artificially inflate revenue figures aimed at misleading investors. Builder.ai allegedly billed VerSe $80 million for cloud services from 2020-2025, while VerSe valued its advertising services to Builder.ai at $50 million, raising concerns about their transactional integrity. Both firms reportedly coordinated the invoice timings to avoid drawing scrutiny, yet Builder.ai filed for bankruptcy in May 2025 after acknowledging it had overstated its sales, leading to legal challenges from US prosecutors. Meanwhile, VerSe faced its own issues with Deloitte uncovering significant weaknesses in its internal financial controls, while maintaining that all its practices are legitimate. Furthermore, Builder.ai’s founder, Sachin Dev Duggal, is under investigation for unrelated money laundering activities linked to the collapsed Videocon conglomerate.