Highlights
- Exiting the banned Real-Money Gaming sector, Zupee lays off 200 employees to comply with the 2025 Act.
- As Zupee lays off 40% of its workforce, it pivots entirely to legal social gaming and micro-dramas.
- To support affected staff, Zupee lays off workers with a severance package and a ₹1 crore medical fund.
In a major restructuring move that underscores the turbulent state of India’s gaming industry, Delhi-NCR-based online gaming giant Zupee lays off approximately 200 employees. This decisive action, which impacts nearly 40% of the company's workforce, marks Zupee’s exit from the Real-Money Gaming (RMG) business model. The layoffs are part of a broader cost-cutting exercise necessitated by the "Promotion and Regulation of Online Gaming Act, 2025," a legislative overhaul that has effectively dismantled India’s $3.5 billion RMG sector by outlawing paid contests, moneycontrol stated.
Co-founder and CEO Dilsher Singh Malhi, who described the cuts as a difficult but necessary step to build a resilient business in a landscape that has already forced rivals to slash thousands of roles. This marks the second significant wave of job cuts for the company within a short period, bringing the total number of job losses to nearly 370. As Zupee lays off more staff, this fresh round comes just four months after the startup fired around 170 employees, nearly 30% of its workforce at the time, in September 2025.
With its core revenue stream rendered illegal, the company, which counts major investors such as Z47 Partners, Orios Venture Partners, and Nepean Capital among its backers, is under immense pressure to pivot. Having raised $120 million in funding to date, Zupee is now forced to stabilize its operations for a new era, with the recent cuts hitting the technology and customer support teams the hardest.
Pivot to Social Gaming & Micro-Dramas
To survive the regulatory crackdown, the platform, which boasts million users, is shifting its focus entirely toward social gaming and interactive content. In a statement confirming the development, Zupee noted that as the company "sharpens its focus on core growth areas, including culturally-rooted online social games and emerging content formats," certain roles had to be restructured. Strategic growth will now center on Zupee Studio, a vertical dedicated to micro-dramas and episodic short-form video content.
This division, which notably remained unaffected by the layoffs, is offering 1-3 minute mini-episodes across genres such as romance, drama, thriller, and comedy. The ultimate goal is to replace legacy RMG operations with "branching narratives" and astrology-based apps that fully comply with the 2025 Act, as reported by Inc.42.
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Despite the difficult circumstances, Zupee has rolled out a comprehensive humanitarian support package for the affected employees. Beyond the contractual notice period, the company is providing additional financial aid linked to years of service. Recognizing the importance of health security, Zupee has established a ₹1 crore medical support fund for emergencies and is ensuring the continuation of full health insurance for the policy term to provide extra security to those impacted.
The ripple effects of the government's ban on real-money gaming have been felt across the entire ecosystem, resulting in startups sacking hundreds of employees. Zupee’s restructuring mirrors similar moves by competitors, as companies like Games24X7, PokerBaazi, Head Digital Works, Mobile Premier League (MPL), and Gameskraft have all been forced to lay off employees to align with the new regulatory reality.
