Krafton-backed Bobble AI has entered the Corporate Insolvency Resolution Process (CIRP) after the National Company Law Tribunal (NCLT) in New Delhi admitted an insolvency petition against its parent company, Talent Unlimited Online Services Private Limited, over a default of about ₹5.77 crore. The case was filed by Axis Trustee Services in its capacity as debenture trustee after the company failed to meet repayment obligations linked to secured non-convertible debentures.
The insolvency proceedings mark a sharp turn for Bobble AI, an Indian AI-powered conversation platform that has attracted backing from investors including South Korea’s gaming major Krafton. The company had raised fresh capital from Krafton as recently as August 2025, when it reportedly secured ₹12.9 crore in a Series D round. At the time, Bobble AI was estimated to be valued at about ₹834 crore, while its FY2024 revenue had grown 25% to ₹37.67 crore and its loss had widened to ₹60.88 crore.
NCLT Admits ₹5.77 Crore Insolvency Plea
The NCLT Delhi admitted the insolvency petition against Talent Unlimited Online Services after finding sufficient evidence of a financial debt and default.
The tribunal’s decision was based partly on communications from the company acknowledging its liability and inability to repay the debt. According to the order, the company had responded to notices in January and February 2026 and acknowledged its repayment difficulties.
Bobble AI Insolvency: Key Numbers
| Metric | Details |
|---|---|
| Default amount | About ₹5.77 crore |
| Original NCD issuance | ₹25 crore |
| First reported default | August 31, 2025 |
| NCD type | Secured, redeemable NCDs |
| Petition filed by | Axis Trustee Services |
| NCLT bench | New Delhi |
| Case number | C.P.(IB)-169(ND)/2026 |
| NCLT citation | 2026 LLBiz NCLT(DEL) 657 |
| CIRP status | Admitted |
The ₹5.77 crore default is a portion of the ₹25 crore secured debentures issued by Talent Unlimited Online Services in March 2023.
How The Debt Default Developed
The debt originated from a Securities Subscription Agreement dated March 3, 2023, under which Talent Unlimited Online Services issued secured and redeemable non-convertible debentures for a total consideration of ₹25 crore.
The debentures were secured through an exclusive first charge created under a Debenture Trust Deed and a Deed of Hypothecation registered with the Registrar of Companies.
Bobble AI Debt Timeline
March 2023
₹25 crore of secured NCDs issued
↓
August 31, 2025
First repayment default
↓
August 2025
Krafton invests ₹12.9 crore in Bobble AI’s Series D round
↓
January 22, 2026
Default notice issued
↓
January 23, 2026
Company acknowledges liability in response
↓
February 9, 2026
Demand notice issued
↓
February 10, 2026
Company again acknowledges repayment difficulties
↓
February 18, 2026
Debenture holders authorize insolvency proceedings
↓
June 2026
NCLT admits the CIRP petition
The timeline highlights the contrast between the company’s attempt to raise additional equity funding in 2025 and its continuing debt-servicing difficulties.
Bobble AI Had Asked For More Time
According to the NCLT proceedings, Talent Unlimited Online Services cited liquidity constraints and requested between nine and 12 months to repay the outstanding amount.
The company also acknowledged that its business was not generating enough surplus even to meet its operating expenses, according to the tribunal record.
The Liquidity Problem
Business revenue
↓
Operating expenses
↓
Insufficient surplus
↓
Debt repayment pressure
↓
Default on NCD obligations
↓
Creditor action under IBC
The development illustrates the difference between raising capital and generating enough operating cash to service debt. Even though Bobble AI secured new equity funding in 2025, its underlying cash-flow position remained under pressure.
Krafton Invested In Bobble AI Just Months Before Insolvency
The insolvency proceedings come less than a year after Krafton injected additional money into Bobble AI.
In August 2025, Krafton reportedly invested ₹12.9 crore through a Series D2 issue of 600 compulsory convertible preference shares. The proceeds were intended for general corporate purposes.
Entrackr estimated Bobble AI’s valuation at around ₹834 crore following the transaction, about 30% below its estimated ₹1,172 crore Series C valuation. Krafton’s stake was expected to rise to 24.84% after the investment.
Krafton’s Bobble AI Position
| Period | Development |
|---|---|
| September 2022 | Krafton invests about $26 million in Bobble AI-related transactions |
| August 2025 | Krafton commits ₹12.9 crore in Series D |
| August 2025 | Estimated valuation falls to about ₹834 crore |
| After 2025 round | Krafton stake estimated at 24.84% |
| June 2026 | Parent company admitted into CIRP |
The sequence underscores how quickly the financial situation can change for venture-backed technology companies.
Bobble AI’s Revenue Grew, But Losses Also Expanded
Bobble AI’s financial performance before the insolvency proceedings showed both growth and increasing pressure on profitability.
For FY2024, the company reported revenue of ₹37.67 crore, a 25% increase from the previous year. However, its loss expanded by 40% to ₹60.88 crore.
Bobble AI Financial Snapshot
| Financial Metric | FY2024 |
|---|---|
| Revenue | ₹37.67 crore |
| Revenue growth | 25% |
| Net loss | ₹60.88 crore |
| Loss growth | 40% |
| Revenue-to-loss ratio | ~1.62x |
Revenue Vs Loss
Revenue
₹37.67 crore
███████████████████
Net loss
₹60.88 crore
██████████████████████████████
The comparison illustrates the central financial challenge facing the company: revenue was growing, but losses were substantially larger than revenue.
The company had not publicly reported FY2025 numbers at the time of the August 2025 funding report.
Bobble AI Has A Large Consumer Footprint
Bobble AI’s financial difficulties stand in contrast to the size of its consumer reach.
The company says its platform has more than 100 million users, while its website describes its technology as a “keyboard-as-a-platform” business built around mobile usage, AI and real-time user intent.
Earlier, Bobble AI said it had more than 150 million downloads and supported more than 140 languages, including speech recognition across nine Indian languages.
Bobble AI’s Platform Scale
| Indicator | Reported Figure |
|---|---|
| Current users claimed by company | 100M+ |
| Earlier reported downloads | 150M+ |
| Languages supported | 140+ |
| Speech recognition | 9 Indian languages |
| Core platform | AI-powered mobile keyboard |
The large user base demonstrates that consumer reach does not necessarily translate into financial sustainability.
What Bobble AI Actually Does
Bobble AI began with a focus on expressive digital communication and later evolved into a broader AI-powered conversation platform.
Its products include Indic keyboards, personalized stickers, GIFs, recommendations and other AI-enabled features. The company’s technology is designed to operate across smartphone applications and use contextual information to provide recommendations and communication tools.
Bobble AI Business Model
Mobile keyboard
↓
User intent
↓
AI-powered recommendations
↓
Content, stickers & expressions
↓
Advertising / insights / subscriptions
↓
Consumer monetisation
The company’s technology has also been integrated with smartphone manufacturers. Bobble worked with Xiaomi to develop the Mint keyboard, which was used as a default keyboard on certain Mi and Redmi devices in India and Indonesia.
Bobble AI Previously Raised Venture Debt
The latest insolvency proceedings are not Bobble AI’s first interaction with debt financing.
In December 2023, Bobble AI announced that it had raised $3 million in venture debt from Trifecta Capital. The company said the funding would support organic and inorganic expansion. At that time, Bobble described itself as an AI-powered conversation media platform with more than 150 million downloads.
Bobble AI Funding History
| Round / Source | Reported Funding |
|---|---|
| Series A and early funding | Undisclosed |
| Series C | ~$17.44 million |
| Krafton investment, 2022 | ~$25.83 million |
| Venture debt, 2023 | $3 million |
| Krafton Series D, 2025 | ₹12.9 crore |
Startup databases estimate Bobble AI has raised more than $50 million across multiple rounds, although databases differ in how they classify certain transactions.
The financing history shows that Bobble AI had access to both equity and debt capital before the insolvency proceedings.
Krafton Was Not Bobble AI’s Only Investor
Krafton became one of Bobble AI’s most important investors, but the company has historically attracted several other investors.
Its earlier backers included Elevation Capital and Affle, while Krafton invested through a combination of primary and secondary transactions.
Affle had built a substantial stake in Bobble AI. In April 2022, Affle disclosed that its total shareholding in Talent Unlimited Online Services had reached 26.24% on a fully diluted basis.
However, Affle subsequently classified its Bobble investment as held for sale and reported that a proposed transaction involving Krafton had not concluded at that stage.
Major Investors And Stakeholders
| Investor | Role / Reported Exposure |
|---|---|
| Krafton | Major strategic investor |
| Affle | Former significant investor |
| Elevation Capital | Early investor |
| Trifecta Capital | Venture-debt provider |
The company’s capital structure has therefore involved a combination of venture equity, strategic investment and debt financing.
NCLT Has Now Triggered The CIRP
With the petition admitted, Bobble AI’s parent company has entered the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code.
The NCLT declared a moratorium under Section 14 and appointed Manish Agarwal as Interim Resolution Professional (IRP).
What Happens During CIRP?
NCLT admission
↓
Moratorium
↓
Interim Resolution Professional appointed
↓
Claims invited and verified
↓
Committee of Creditors formed
↓
Resolution plans evaluated
↓
Resolution / liquidation
The purpose of CIRP is not automatically to shut down a company. The process is designed to determine whether the business can be rescued through a resolution plan.
If a viable resolution cannot be achieved within the applicable framework, liquidation can ultimately become an option.
Why The Case Matters For Startup Debt
Bobble AI’s case illustrates a broader issue facing India’s venture-backed startup ecosystem.
Startups often rely heavily on equity funding during their early years, but some eventually add venture debt or secured debt to extend their runway without immediately diluting shareholders.
Debt can provide valuable capital when revenue is growing, but repayment obligations create a different risk profile from equity funding.
Equity Vs Debt
| Equity Funding | Debt Funding |
|---|---|
| No fixed repayment obligation | Repayment required |
| Dilutes existing shareholders | Usually does not immediately dilute equity |
| Investor takes business risk | Creditor has contractual repayment rights |
| Can support long-term growth | Can increase liquidity pressure |
| Failure generally affects valuation | Default can trigger legal action |
Bobble AI’s experience demonstrates how a company can continue raising equity while simultaneously facing pressure from debt obligations.
The Bigger Picture
Bobble AI’s insolvency proceedings represent a significant setback for a startup that had built a large consumer footprint and attracted backing from major technology and investment companies. The NCLT found that Talent Unlimited Online Services had defaulted on about ₹5.77 crore of financial debt and had acknowledged its inability to repay the obligation.
The case also highlights the risks of combining rapid technology development with debt financing when operating cash flows remain weak. Bobble AI’s FY2024 revenue of ₹37.67 crore was growing, but its ₹60.88 crore loss was substantially higher than its revenue. The company then raised another ₹12.9 crore from Krafton in 2025, showing that fresh equity capital did not prevent the later debt default.
Looking Ahead
The immediate priority for Bobble AI’s parent company will be the CIRP process and the identification of a viable resolution. The appointment of an interim resolution professional means the company’s assets, liabilities, operations and creditor claims will now be examined within the insolvency framework. The outcome could involve a restructuring, a new investor or another resolution mechanism rather than necessarily ending the business.
For Krafton and other stakeholders, the case highlights the uncertainty involved in startup investing, particularly when a company combines venture funding with debt. Bobble AI still has a substantial technology platform and a large claimed user base, but the insolvency process will determine whether those assets can support a viable future business. The eventual resolution will also offer a useful test of how India’s insolvency system handles financially stressed, venture-backed technology companies.
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