Zupee Shuts Remaining Free-to-Play Games, Pivots to AI-Led Ventures

Gurugram-based gaming company Zupee will shut down its remaining free-to-play games and shift its focus to building artificial intelligence-led businesses aimed at addressing needs in India, BW Disrupt reported on October 16, 2026. The decision ends the company's gaming operations.

Zupee's Exit From Free-to-Play Gaming

The move follows Zupee's exit from real-money gaming in August 2025 after the enactment of the Promotion and Regulation of Online Gaming Act. Zupee subsequently transitioned to a free-to-play model, continuing to serve users without real-money gaming features before deciding to discontinue its remaining titles.

Founded in 2018, Zupee built its business around mobile versions of traditional Indian games, particularly Ludo. The company said more than 200 million people had played on its platform, with most users coming from smaller cities and towns. Many of them were first-time mobile gamers.

Zupee plans to use the technology, product development capabilities and consumer insights it gained from operating gaming platforms to develop its next set of businesses. Its experience includes building real-time multiplayer technology, designing products for first-time internet users and developing digital experiences for consumers beyond major urban centres.

The company has not disclosed the specific AI sectors it intends to enter, the products it plans to develop or the timeline for launching its new businesses. It has also not announced any investment commitments, partnerships or revenue targets related to the proposed transition.

In its announcement, Zupee said its business had focused on building digital products for India's expanding internet user base rather than adapting existing products for new audiences. The company added that its technology and team would support its next phase of operations.

Zupee's Layoffs and Microdrama Acquisitions

Zupee executed two rounds of layoffs totaling approximately 370 employees, about 62% of its pre-ban workforce, according to akta.pro company records. The first round cut about 170 roles in September 2025, and the second cut about 200 roles, roughly 40% of the remaining staff, in January 2026.

Zupee launched Zupee Studio, a short-video microdrama platform, in February 2026 as its primary new content vertical in response to the real-money gaming ban. The same month, it acquired Mumbai-based microdrama startup Vertical TV for under INR 40 Cr (about $4.7 million) to bolster the platform.

In November 2025, Zupee acquired Australian AI startup Nucanon for $5 million to expand into interactive storytelling. Nucanon's narrative AI technology enables branching narratives and dynamic characters adapting to user choices.

Zupee's Next Steps After the Gaming Exit

Zupee said its future strategy would centre on AI-led businesses using advanced technology, with a focus on products designed for Indian users. The company has not stated a timeline for launching its new businesses.