Zupee Layoffs:The ripple effects of India’s real money gaming crackdown continue to reshape the startup ecosystem. Delhi NCR-based gaming firm Zupee has laid off around 200 employees, nearly 40 per cent of its workforce, as the company recalibrates its business priorities in the aftermath of the ban.
As reported by Inc42, based on source inputs, the decision was announced during a town hall led by cofounder and CEO Dilsher Singh Malhi. The move is being positioned as part of a broader cost rationalisation effort as the company shifts focus away from its earlier core model of real money games.
Company Calls It Role Restructuring Amid New Focus Areas
Confirming the development, Zupee said in a statement, “As the company sharpens its focus on core growth areas, including culturally-rooted online social games and emerging content formats, certain roles have been restructured, impacting approximately 200 employees across a few teams.”
The company added that affected employees will receive support beyond their contractual notice period. This includes additional financial assistance linked to tenure, continued health insurance coverage, and access to a newly created INR 1 crore medical support fund meant to provide additional security.
This is not the first workforce reduction at Zupee in recent months. Around four months ago, the startup had let go of nearly 170 employees, roughly 30 per cent of its staff strength at the time.
From Real Money Gaming To Zupee Studio Short Videos
The layoffs coincide with Zupee’s recent attempt to diversify its offerings through a short video content platform called Zupee Studio. The platform features 1 to 3-minute mini episodes across genres such as romance, drama, thriller, and comedy.
This pivot highlights how deeply the real money gaming restrictions have forced companies in the segment to rethink their business models. What was once a fast-growing and heavily funded category has now become an operational challenge for multiple players.
Zupee, which has raised $120 million so far from investors including Z47 Partners, Orios Venture Partners, and Nepean Capital, is among several startups feeling the strain.
Industry-Wide Impact Of The Ban
Zupee’s situation reflects a broader industry trend. Several other real-money gaming firms, such as Games24X7, PokerBaazi, Head Digital Works, and Mobile Premier League, have also announced layoffs over the past year.
The government’s decision to curb real money gaming has not only impacted revenues but also forced startups to scale back operations, cut costs, and search for alternative growth avenues.
For Zupee, the transition to short-form video content signals an attempt to stay relevant in a changing regulatory and business environment. However, the human cost of this transition is now visible, as hundreds of employees across the sector face uncertainty in the wake of the policy shift.
