Zupee Layoffs: Zupee was founded in 2018 by Dilsher Singh Malhi and Siddhant Saurabh. The startup has raised over $121 million in total funding to date. Zupee intends to increase its focus on core growth areas, including online social games and emerging content formats related to culture.
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Zupee Layoffs: Gaming and entertainment platform Zupee is laying off approximately 200 employees. These employees represent approximately 40 percent of the startup’s total workforce. Gaming startups are still grappling with the impact of the government’s new online gaming law, which completely bans real-money games (RMG). Zupee stated that the layoffs are part of its efforts to build a strong, future-ready business in the face of the changing regulatory and market environment. Inc42 first reported this development.
The Promotion and Regulation of Online Gaming Bill, 2025, which regulates online gaming, received President Draupadi Murmu’s assent in August 2025. The bill subsequently became law. This legislation seeks to ban all forms of online real-money games. The bill was approved by the Rajya Sabha on August 21, 2025, and had previously been passed by the Lok Sabha. The new law not only bans online money games but also promotes e-sports, educational, and social online games.
170 employees were laid off in September 2025.
Previously, the startup had eliminated 170 jobs in September 2025. Going forward, Zupee intends to increase its focus on core growth areas, including culturally relevant online social games and emerging content formats. Zupee founder Dilsher Singh Malhi said in a statement, “Decisions like these are never easy. Our people have played a crucial role in Zupee’s journey, and we deeply value their contributions. However, as we align our organization with long-term priorities, some changes are necessary to keep the business sustainable and future-focused.”
How Zupee will help laid-off employees
Zuppee has stated that the company will provide additional financial assistance to employees based on their years of service, in addition to the notice period stipulated in their contract. Employees’ health insurance coverage will remain active for the period stipulated in their contract, even after they leave Zupee. Additionally, the company has established a medical support fund of ₹1 crore (approximately $10 million) to provide additional security. The startup has created a dedicated team to work with industry stakeholders to identify new job opportunities for affected employees. They will be given first priority for rehiring when new positions become available.
Zupee was founded in 2018 by Malhi and Siddhant Saurabh. It focused on board games like Ludo, Snakes & Ladders, and Carrom. Following the ban on real-money games, the company has entered several consumer internet categories in recent months, including microdrama and esports (Zuppee Studio), astrology (Neo Astro), and micro-learning (SuperLearn). In November, it acquired Australian AI startup NewCanon to create a new AI-powered interactive storytelling vertical. Zupee has over 200 million registered users.
Who has invested in Zupee?
Zuppee raised $102 million in funding in January 2022, valuing it at $600 million at the time. The startup has raised over $121 million in total funding to date. Its investors include WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, Z47 (formerly Matrix Partners India) and Orios Venture Partners.
