Second major workforce cut in four months as startup pivots away from real-money games
Delhi NCR-based gaming startup Zupee has laid off around 200 employees, nearly 40% of its workforce, sources told Inc42. The layoffs were announced during a town hall on Friday by cofounder and CEO Dilsher Singh Malhi.
Cost-Cutting After Real Money Gaming Ban
Why now, and why this deep?
The layoffs are part of a broader cost-cutting exercise following the government’s ban on real money gaming, which has severely disrupted Zupee’s core business. Confirming the development, Zupee said the restructuring was linked to a sharper focus on “culturally-rooted online social games and emerging content formats.”
Certain roles were restructured across teams, impacting approximately 200 employees, the company added.
Severance and Support Measures
Is Zupee softening the blow?
Zupee said affected employees will receive:
- Compensation beyond the contractual notice period, linked to years of service
- Continued health insurance coverage
- Access to an INR 1 Cr medical support fund for additional security
The measures aim to cushion the impact, even as the company tightens spending.
Pivot to Short-Form Content
Can content replace cash games?
The layoffs follow Zupee’s recent pivot into short-video content through Zupee Studio, launched after its real money games were banned.
- The platform offers 1–3 minute mini-episodes
- Genres include romance, drama, thriller and comedy
The shift signals an attempt to retain user engagement while exploring non-gaming revenue streams—but monetisation remains uncertain.
Second Round in Four Months
Is the worst still ahead?
This is Zupee’s second major layoff round in four months. In the previous round, the startup let go of around 170 employees, roughly 30% of its workforce. Cumulatively, the cuts underline the severity of the regulatory shock.
Founded in Delhi NCR, Zupee has raised $120 Mn to date from investors including Z47 Partners, Orios Venture Partners, and Nepean Capital.
Industry-Wide Fallout
Is Zupee alone? Far from it.
The ban on real money gaming has triggered layoffs across the sector. Startups such as Games24X7, PokerBaazi, Head Digital Works, and Mobile Premier League have also cut jobs in recent months.
The episode highlights how regulatory shifts can rapidly redraw the fortunes of India’s once-booming gaming ecosystem.
TL;DR
Zupee has laid off around 200 employees, nearly 40% of its workforce, following the ban on real money gaming. The move comes just four months after another major layoff round, as the startup pivots toward social games and short-form content.
AI summary
- Zupee cuts ~200 jobs, about 40% of staff
- Layoffs announced by CEO Dilsher Singh Malhi in town hall
- Second layoff round in four months
- Triggered by ban on real money gaming
- Company pivoting to short-form content via Zupee Studio
