Zupee Reportedly Winds Down Gaming Operations and Pivots to AI
Gaming and tech startup Zupee is reportedly exiting the gaming sector entirely, shutting down its remaining free-to-play games and consumer apps as it pivots toward artificial intelligence (AI) ventures. The development follows the reported shutdown of its consumer-facing ventures, astrology platform NeoAstro and microdrama app Zupee Studio.
According to reports citing people familiar with the developments, the company implemented further workforce reductions as part of its final wind-down phase.
The transition coincides with Zupee’s October 2026 announcement that it would move away from gaming and leverage its technology capabilities to develop AI-led products. The company cited its past experience serving more than 200 million users but did not initially disclose a specific product, launch timeline, or detailed business plan.
Sources quoted in industry reports have alleged that the AI announcement was intended to mask the company’s decision to wind down operations, claiming only a handful of staff remained with the founders. However, these claims have not been independently established. Zupee has not publicly confirmed a company-wide shutdown or disclosed the operational status of its proposed AI business.
NeoAstro and Zupee Studio Shut Down
Zupee has discontinued its astrology platform NeoAstro and microdrama venture Zupee Studio. NeoAstro reportedly informed users that it was closing services and processing refunds for remaining wallet balances. Zupee Studio was similarly discontinued, with refunds reportedly processed for eligible unused subscription periods.
The closures follow attempts by the company to diversify beyond gaming after regulatory changes impacted its original model. Its proposed acquisition of microdrama startup Vertical TV has also remained uncertain; while initial reports described the transaction as completed at a valuation below ₹40 crore, subsequent reports indicated the deal may have fallen through. The final status of that transaction has not been independently established.
These developments follow a broader restructuring that began after Zupee discontinued its real-money gaming operations in August 2025 and shifted temporarily toward a free-to-play model, following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.
Zupee’s Funding and Business History
Founded in 2018 by Dilsher Singh Malhi and Siddhant Saurabh, Zupee built its footprint around mobile versions of traditional Indian games, including Ludo, Snakes and Ladders, and Carrom, claiming a user base of over 200 million.
The startup raised more than $120 million from institutional backers including Z47, Orios Venture Partners, Nepean Capital, WestCap Group, Tomales Bay Capital, and AJ Capital. Following disruptions to its real-money gaming business, the startup underwent multiple workforce reductions, with earlier rounds affecting approximately 170 employees in September 2025 and around 200 in January 2026.
With its gaming operations discontinued and consumer ventures shut down, questions remain regarding the company’s cash reserves, asset status, and the future execution of its stated AI strategy. Investor representatives and Zupee management did not respond to requests for comment on the developments.
