Bobble AI Faces Layoffs Amid Fundraising Challenges
Bobble AI, a pioneering startup focused on AI-driven communication and data intelligence, has recently let go of approximately 50 employees as part of its restructuring efforts, as reported by three informed sources. The layoffs were attributed to the company’s persistent difficulties in securing new funding.
A source, who wished to remain anonymous, noted that the decision was communicated internally. They stated that the layoffs are linked to a slowdown in closing fresh financing rounds.
In response to the situation, Bobble AI confirmed the changes to Startup Superb, explaining that the company has undertaken an organisational redesign in order to align with long-term strategic goals and stakeholder commitments. Ankit Prasad, the founder of Bobble AI, mentioned that this process involved careful consideration of three critical components: Projects, Processes, and People. He added that while fundraising challenges played a role, the primary aim was to create a leaner and more resilient organisation. Bobble AI maintains a positive outlook regarding its growth trajectory and remains dedicated to innovations in AI-powered communication and data intelligence.
However, the firm has not specified the exact number of affected employees.
Startup Superb had previously reported that Bobble AI is seeking fresh capital at a 30% lower valuation. According to a data intelligence platform monitoring startups, the Gurugram-based company has successfully raised around $35 million, including $26 million from Krafton Inc in September 2022, through a mix of primary and secondary financing. Krafton now holds nearly 25% of Bobble AI.
The company stated that it is offering support to departing employees through an Employee Assistance Program, which includes career coaching and well-being sessions.
Bobble AI features a unique AI-enabled Indic keyboard that accommodates over 120 languages, along with facial recognition technology for personalised GIFs and stickers. The platform is integrated with WhatsApp and Facebook (Meta) and generates revenue through advertisements, data insights, subscriptions, and branded products.
For the financial year ending March 2024, Bobble AI reported a revenue increase of 25%, totalling Rs 37.67 crore. Despite this growth, there was also a 40% rise in losses, amounting to Rs 60.88 crore during the same period. The company has yet to disclose its financial results for FY25.