Amid shifting regulations and market changes, gaming and entertainment platform Zupee has announced a fresh round of layoffs as it restructures its business operations.
The company is letting go of around 200 employees, a move that impacts nearly 40% of its workforce. This decision follows the government’s recent ban on real-money games and comes months after Zupee laid off 170 employees in September 2025.
Company response
Zupee said the restructuring is aimed at building a stronger and more sustainable business. In a statement, the company said it is working to “build a resilient, future-ready business aligned with the evolving regulatory and market landscape.”
Founder Dilsher Singh Malhi acknowledged the human impact of the decision. He said, “Decisions like these are never easy. Our people have played an important role in Zupee’s journey and we deeply value their contributions.”
Support for affected employees
The company has announced extended financial support for impacted employees, based on their years of service, in addition to the contractual notice period. Zupee also confirmed that health insurance coverage for laid-off staff will continue for its full term even after their exit.
To provide added security, the start-up has created a ₹1 crore medical support fund for affected employees.
Strategic shift ahead
Looking forward, Zupee plans to concentrate on core growth areas such as culturally rooted online social games and new content formats. Founded in 2018 by Malhi and Siddhant Saurabh, the company initially focused on board games like Ludo, Snakes and Ladders, and Carrom.
Following the real-money gaming ban, Zupee expanded into other segments, including microdramas, esports through Zupee Studio, astrology via Neo Astro, and microlearning with SuperLearn.
Growth and investments
In November, Zupee acquired Australian AI start-up Nucanon to launch an AI-powered interactive storytelling vertical. The platform has more than 200 million registered users and was last valued at $600 million after raising $102 million in January 2022.
So far, the company has raised over $121 million from investors including WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, Z47 (formerly Matrix Partners India), and Orios Venture Partners.
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