Team Startupcity

• Krafton's holding in Bobble AI increases to 24.84% with fresh  Rs 12.9 Cr infusion
• Company valuation goes down by 30% to  Rs 834 Cr from earlier  Rs 1,172 Cr
• Round is still open for further capital participation

Bobble AI, the Xiaomi-backed Gurugram-based startup that offers an AI keyboard, has raised  Rs 12.9 crore (about USD 1.5 million) from existing investor Krafton as part of its ongoing Series D round of funding.

As per regulatory filings retrieved from the Registrar of Companies (RoC), the board has authorized the issuance of 600 Series D2 compulsory convertible preference shares of  Rs 2,14,940 each to enable this investment.

Even after raising fresh money, the valuation of Bobble AI has dropped to  Rs 834 crore (USD 98 million) from its earlier valuation of  Rs 1,172 crore (USD 138 million) in the Series C round.

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Krafton, which had made an initial investment of  Rs 206 crore (USD 26 million) in 2022 for a 12.34% stake, has increased its holding to 24.84% now with the latest tranche. The money raised will be utilized towards general corporate purposes.

Bobble AI was established in 2012, and it provides an AI-based Indic keyboard that offers support for over 120 Indian languages. Its product catalog features facial recognition for creating customized stickers and GIFs and integration with messaging apps like WhatsApp and Facebook. The firm generates revenue through advertisements, data insights, subscriptions, and merchandise.

A company spokesperson stated, "Our attention continues to be on providing inclusive, AI-based experiences that resonate with local language users and drive cross-platform engagement."

Bobble AI reported a 25% increase in revenue in FY24 to  Rs 37.67 crore. Its net losses, however, also expanded by 40% to  Rs 60.88 crore. Financials for FY25 are yet to be released.