Bobble AI enters insolvency over Rs 5.77 Cr debt default

Bobble AI has entered the insolvency process after failing to repay Rs 5.77 Cr, including interest, in defaulted debenture repayments. Axis Trustee Services Limited filed the case as debenture trustee for the investors. The NCLT bench in New Delhi passed the order on 12 June 2026.

The company had raised about $35 Mn in total. That includes $26 Mn from Krafton Inc in September 2022, a mix of primary and secondary capital, which left Krafton with roughly 25 percent. In March 2023 it raised Rs 25 Cr through secured debentures. Repayments started being missed from August 2025.

The tribunal rejected the argument that ongoing discussions with lenders should delay recognition of the default. It found that the company’s own emails admitted both the debt and the default. Bobble AI had laid off about 50 employees in the previous year during a restructuring.

The part operators should sit with

A company can be well funded and still go under on a small secured instrument. Rs 5.77 Cr against $35 Mn raised is the whole lesson about debt seniority.

Equity money is patient. Secured debt is not. A debenture trustee has a defined obligation to act, and it acts on the document, not on the cap table or the brand name behind it. Ongoing talks are not a defence. Once the admission exists in writing, the tribunal has what it needs.

This shows up in operator life more often than people admit. Working capital lines. Invoice discounting against marketplace receivables. Inventory financing from a channel partner. All of them are instruments with terms, and terms bite well before investors do.

Practical step. List every borrowing your business carries, secured or not, with its repayment date and who can trigger enforcement. If you cannot produce that list in ten minutes, that is the finding.