Appnext parent Affle India Limited has demanded a complete inspection of conversation media platform Bobble AI, and has secured Delhi High Court’s order for the same
Affle has made a significant investment in Bobble and holds 26.24% stake on a fully diluted basis in the AI platform
In July last year, the Delhi High Court in its order upheld Affle’s right of inspection as per the shareholder’s agreement and Bobble was asked to comply promptly
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Appnext parent Affle India Limited has demanded a complete inspection of conversation media platform Bobble AI, in which it holds a minority stake, and has secured Delhi High Court’s order for the same.
Affle has also filed an execution petition in the Delhi High Court to enforce the full inspection rights on Bobble as per the Shareholder’s Agreement.
Affle has alleged in a statement that Bobble had refused to comply and is blatantly in contempt of court orders.
Affle has made a significant investment in Bobble and holds 26.24% stake on a fully diluted basis in the AI platform, while also holding a director’s seat in its board, based on Affle India’s integrated annual report 2022-23.
In July last year, the Delhi High Court in its order upheld Affle’s right of inspection as per the shareholder’s agreement and Bobble was asked to comply promptly. Given the latter’s failure to comply with the court orders, Affle is pursuing the contempt petition in Delhi High Court against Bobble, the statement added.
Founded by Anuj Khanna Sohum and Anuj Kumar, Affle India Limited is a global technology company. The platform is backed by Microsoft, Bennett Coleman & Company (BCCL) among others. The company functions to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud.
The NSE-listed company further said in a statement that Affle has consistently invoked its right of inspection on Bobble for over 18 months on account of suspicious fraudulent activities, breaches of fiduciary duties and regulatory compliances, including financial and data leakages.
The company also alleged in a statement that Bobble is highly connected and trying to use all means to arm twist Affle into a low-balled unfair settlement and exit.
Marketing platform Jampp maker claimed in a statement, during the pendency of the disputes in Arbitration in Singapore International Arbitration Centre (SIAC) and Delhi International Arbitration Centre (DIAC) where Affle is the aggrieved claimant, Xiaomi exited majority of its investment in Bobble by selling shares to Korean-listed company Krafton, with significant dealings with Tencent in China.
The statement further claimed that Affle was ready to exit from Bobble, but Krafton did not make payment to Affle’s bank account in October 2022 and yet through some other suspicious transactions Krafton managed to become a shareholder of Bobble and it is also supporting Bobble’s continued poor governance conduct including evasion of court orders for inspection.
As of March 31, 2023, the carrying value of investment in Bobble of INR 135 Cr (around $16.2 Mn) was shown as the deemed cost of investment, as per Affle India’s annual report.
Founded by two brothers Ankit Prasad and Rahul Prasad in 2015, Bobble AI claims to be the world’s first conversation media platform. The Gurugram-based company’s flagship product Bobble Indic Keyboard allows real-time content creation and personalization by deploying its unique AI technology.
In February, Affle India Limited invested in a travel-focussed social media platform Explurger, cofounded by Bollywood actor Sonu Sood, has raised $4.5 Mn (INR 37.3 Cr) in its Series A funding round at a pre-money valuation of $40 Mn (INR 338 crore), where Affle will hold a 9.03% stake in the startup post the investment.
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