Krafton-backed Bobble AI enters insolvency proceedings over Rs 5.77 crore default

NEW DELHI: Bobble AI’s finances have hit a rough patch. The National Company Law Tribunal (NCLT), New Delhi, has admitted an insolvency petition against Talent Unlimited Online Services Private Limited, the operating company of the AI-powered communication startup, over a default of about Rs 5.77 crore.

The insolvency proceedings follow a secured debt facility raised by the company in 2023. Bobble AI had issued debentures worth Rs 25 crore in March that year, with payments under the instrument reportedly remaining unpaid since August 2025.

With interest included, the amount classified as default has risen to around Rs 5.77 crore. The development was first reported by Entrackr, citing regulatory filings and records with the Registrar of Companies.

The tribunal’s admission of the petition has formally initiated the Corporate Insolvency Resolution Process (CIRP) against the company.

Manish Agarwal has been appointed as the interim resolution professional and will oversee the company during the initial phase of the insolvency proceedings.

The NCLT has also imposed a moratorium, which restricts creditors from pursuing separate recovery proceedings against the company while the insolvency process is under way. It also places restrictions on dealing with the company’s assets.

The petition was filed by Axis Trustee Services Limited, which acted as the debenture trustee representing the interests of investors.

Bobble AI had argued before the tribunal that discussions with its lenders over the outstanding dues were continuing. However, the NCLT found sufficient evidence of a financial default.

The tribunal’s order referred to correspondence from the company acknowledging its outstanding financial obligation and its failure to make the required payments.

With the petition now admitted, the matter has moved from negotiations between the company and its lenders to a formal insolvency resolution process.

Bobble AI has spent more than a decade developing products focused on digital communication. Its flagship keyboard supports more than 120 languages and uses AI-driven features to offer personalised content such as GIFs and stickers.

Its technology has also been integrated with platforms including WhatsApp and Facebook. The company has generated revenue through advertising, subscriptions, data intelligence and merchandise.

The startup has raised around $35 million from investors. South Korean gaming company Krafton became one of its major backers in 2022 after investing $26 million through primary and secondary transactions. Krafton holds close to 25 per cent in the company.

The insolvency proceedings come after an earlier restructuring exercise at Bobble AI, which included a reduction of around 50 jobs last year.

The CIRP will now determine how the company’s liabilities are resolved and what options remain for Bobble AI’s business, creditors and investors.