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Sachin Dev Duggal, the founder and former chief executive of Microsoft’s failed technology start-up, backed by a technology start.

The self-described “main wizard” of the software company, which has reached more than $ 500 million from investors of promise to use artificial intelligence to revolutionize application development, also borrowed against his stake in Builder.Ai, according to more people familiar with the matter.

Investment firm Duggal, SD square investment, made over $ 20 million from selling business stocks, those who are familiar with the issue, says transactions that began before Builder.Ai first received funding for investing capital nearly seven years ago.

Most of the stock sales were concluded before 2023, when the company raised $ 250 million in a blockbuster funding round, led by the Qatari investment authority, which provided a builder.

London -based startup has also attracted the support of leading investors, including a Newouper -based partners and the Deepcore unit focused on SoftBank.

Builder.Ai filed for US protection for bankruptcy earlier this month after internal investigation revealed evidence of Potentially false sales The company also revised revenue of just a quarter of previous estimates.

US bankruptcy files also show that SD Squared Ventures was still the company’s largest shareholder at the time of his collapse, with more than 15 % of the shares.

The Hong Kong -based investment firm, John Pacific, also provided duggal funds provided against his actions through the so -called. “Structured Transaction”, which has similar characteristics with debt, according to the people.

John Pacific also bought $ 6 million in a builder.

John Pacific describes himself as an “special-seated” investor in investing capital. The company’s website states that it offers “Capital Supported Solutions Solutions to the Company” to the founders of the technique.

Michael Josephoseph, co-chief executive of John Pacific, said his firm’s funds “never had more than $ 10 million in exposure” to Builder.Ai and reduced this “significantly” before the company failed.

The Financial Times announced last month that Duggal had It sounded investors The potential return on the company that founded it from insolvency, in an agreement that would require less than $ 10 million in initial funding.

There is no suggestion that Dugal broke any rules by selling his shares or borrowing against them. Duggal declined to comment.

Earlier this month, the FT announced the multiple ways in which the company, under the term of Duggal as chief executive, was suspected of inflating revenue. The alleged practices under the scrutiny include improperly reserved discounts and seemingly circular transactions with key clients.

Duggal’s lawyers said there were “serious inaccuracies” in allegations of income inflation for which the FT commented.

In the weeks before the company was exposed, the office of US lawyers for the southern district of Yorkyork also asked the builder.