Exclusive: Bobble AI lays off 50 employees amid organizational redesign

Bobble AI, the homegrown AI-powered communication and data intelligence startup, has laid off about 50 employees in a recent round of restructuring, according to three sources aware of the matter.

“The move was communicated internally and has been attributed to the company’s ongoing fundraising challenges. The layoffs were linked to the slowdown in closing fresh funding,” said a source, requesting anonymity.

Bobble AI confirmed the development to Entrackr.

“Bobble AI recently undertook an organizational redesign to align with our long-term strategic priorities and commitment to stakeholders. This meant reflection and looking into 3 Ps – Projects, Processes and People. This decision was not driven solely by fundraising but by our focus on building a leaner, more resilient company. We remain confident about our growth path and committed to innovating in AI-powered communication and data intelligence,” said Ankit Prasad, founder of Bobble AI, in a statement.

However, the company did not comment on how many employees were impacted by the layoff.

Entrackr had earlier reported that Bobble AI is raising fresh funds at a 30% lower valuation. According to startup data intelligence platform TheKredible, the Gurugram-based company has raised around $35 million including $26 million in a mix of primary and secondary capital from Krafton Inc in September 2022.

Krafton controls nearly 25% stake in the 12-year-old company.

According to the company, it is supporting outgoing employees with an Employee Assistance Program, career coaching, and well-being sessions.

Bobble.ai offers an AI-powered Indic keyboard supporting over 120 languages, with facial recognition for personalized GIFs and stickers. Integrated with WhatsApp and Facebook (Meta), the company monetizes through ads, data insights, subscriptions, and branded merchandise.

For the fiscal year ended March 2024, Bobble AI registered a 25% growth in revenue to Rs 37.67 crore. However, its losses also widened by 40% to Rs 60.88 crore in the same period. The firm is yet to report its FY25 numbers.