VerSe, Builder.ai, and the cloud deal that made Microsoft rethink its approach

In the frenzied funding climate of 2020–21, global tech giants were racing to grab a stake in India’s next generation of high-growth internet companies. Microsoft, eager to expand its Azure footprint, wasn’t just looking to invest capital—it was scouting for platforms that could double up as long-term cloud customers. That’s when VerSe Innovation, which runs platforms like Dailyhunt, and Josh among others, caught its attention.

At the time, VerSe was raising one of its largest funding rounds yet. Its newly launched short-video app, Josh, was riding the wave created by TikTok’s exit from India, and the company was positioning itself as a breakout consumer platform. Microsoft entered the picture not to lead the round, but with a strategic interest: a $10 million equity investment, accompanied by what insiders describe as an “in-principle” understanding that VerSe would eventually become a major Azure customer.

Just over four years later, while Microsoft remains an investor in VerSe, a persistent strain has developed between the two over how the contract has been understood and executed at various points. Complicating this relationship was the unanticipated arrangement put forward by London-based Builder.ai for fulfilling the cloud deal.