Bobble AI lays off 50 employees amid restructuring

September 4, 2025 • FinTech News
Bobble AI lays off 50 employees amid restructuring

AI-powered communication startup Bobble AI has laid off approximately 50 employees as part of a major organizational redesign. The Gurugram-based company confirmed these job cuts, describing them as part of a broader restructuring effort. This move aims to better align the company’s projects, processes, and workforce with its long-term strategic goals.

While sources suggested the layoffs connected to fundraising challenges and delays in securing new capital, founder Ankit Prasad offered a different perspective. He clarified that the decision was not solely about funding but rather about building a leaner and more resilient company. Prasad emphasized that Bobble AI remains committed to innovation in AI-driven communication and data intelligence.

Valuation Pressure and Financial Performance

The restructuring comes as Bobble AI faces significant valuation pressure during its current fundraising efforts. Reports indicate the company is seeking new capital at a valuation approximately 30% lower than previous rounds. According to available data, Bobble AI has raised about $35 million to date. This includes a $26 million investment from Krafton Inc., which currently holds a 25% stake in the startup.

To support affected employees during this transition, Bobble AI is providing career coaching, well-being support, and access to an Employee Assistance Program. These measures aim to help former staff members navigate their career paths following the layoffs.

Company Background and Financial Health

Founded twelve years ago, Bobble AI is best known for its AI-powered Indic keyboard. This technology supports more than 120 languages and integrates with popular platforms including WhatsApp and Facebook. The app also features facial recognition-based GIFs and stickers. The company generates revenue through multiple streams: advertising, data insights, subscriptions, and branded merchandise.

Despite showing a 25% revenue increase to Rs 37.67 crore in FY24, the company’s financial challenges persist. Its losses actually widened by 40% to Rs 60.88 crore during the same period, highlighting the financial pressures behind the recent layoffs. Bobble AI has not yet released its FY25 results but maintains confidence in its growth trajectory despite current challenges.