Zupee lays off 170 workers after gaming ban impact.

114

In an unexpected jolt to India’s online gaming scene, Zupee lays off 170 workers—nearly 30% of its workforce. The reason? The government’s freshly minted Promotion and Regulation of Online Gaming Act, 2025, which slammed the door shut on real-money gaming (RMG) across India. Dilsher Singh Malhi, Zupee’s founder and CEO, didn’t mince words, calling it “a tough but essential step.” Tough indeed. Survival wasn’t a choice anymore—it was a mandate.

The tremors didn’t stop at Zupee. Giants like Head Digital Works, Mobile Premier League (MPL), Baazi Games, and Games24x7 found themselves scrambling, shedding hundreds of jobs to cope with the abrupt regulatory upheaval. Employees affected aren’t left in the lurch: they’re getting severance packages that sound generous on paper—up to six months’ salary, ongoing health coverage, a ₹1 crore medical support fund, plus front-row priority when new roles pop up.

Rather than folding, Zupee chose to reimagine its future. It’s pivoting hard, moving into social gaming and entertainment. Enter Zupee Plus, a subscription service that ditches ads and dishes out exclusive content, and Zupee Studio, churning out bite-sized drama series. This isn’t just a survival tactic—it’s an effort to remain relevant in a market hungry for culturally resonant content.

1. Introduction to Zupee

1.1 Startup Overview

Zupee’s journey began in 2018 when Dilsher Singh Malhi and Siddhant Saurabh spotted a glaring gap in India’s digital entertainment scene. Inspired by the classic board games that every Indian household knew—Ludo, Snakes and Ladders, Carrom—they thought: Why not digitize these nostalgic gems into competitive skill-based games? The idea clicked, and in no time, Zupee amassed over 150 million registered users, becoming the go-to playground for India’s gaming enthusiasts. Its charm? A clever cocktail of tradition and strategy.

1.2 Working Model

Zupee’s core appeal was simplicity wrapped in engagement. Players deposited money, joined contests, and played games they’d grown up loving, now with the added rush of winning real cash. This model hooked users by blending the familiar with a dash of high-stakes excitement. Entry fees, skill tournaments, strategic gameplay—it was addictive.

1.3 Revenue Model

Before the ban hit, Zupee thrived on:

• Entry Fees and Commissions: Taking a cut from each contest entry.
• In-App Purchases: Selling digital upgrades and premium features.
• Advertising: Leveraging its massive user base for targeted ads.

Post-ban, the playbook was rewritten:

• Zupee Plus Subscription: Just ₹499 every three months, users enjoy ad-free gaming and unlimited short entertainment.
• Zupee Studio Content Creation: Short-form dramas designed to pull in a broader audience and keep them glued to the app.

1.4 Funding and Financial Backing

Venture capitalists didn’t hesitate. Top-tier investors poured money in, eager to back this audacious experiment. The investments accelerated tech development, user acquisition, and market reach, cementing Zupee’s reputation as a high-growth Indian startup.

2. Industry Growth Trends

2.1 Indian Online Gaming Market

Before the hammer came down, India’s online gaming market was on fire—valued around $2.8 billion in 2021 and set to grow at over 20% CAGR till 2026. The secret sauce? Real-money games, skill-based challenges, and fantasy sports, pulling in millions of users and fat investments.

2.2 Impact of RMG Ban

But then came the bombshell—the 2025 Online Gaming Act. Overnight, RMG was illegal. The industry reeled. Mass layoffs became the new normal. Head Digital Works jettisoned 500 employees. MPL slashed 60%-80% of its workforce. Baazi Games and Games24x7 weren’t far behind.

3. Problem Solved by Zupee

Zupee nailed it by tapping India’s undying love for traditional games. It offered a space where players competed not just for fun but for real rewards. What set it apart wasn’t flashy tech—it was the cultural connection, the feeling that the game understood the player.

4. Competitors in the Market

4.1 Direct Competitors

• Dream11: Now leaning into financial services after its fantasy sports days.
• MPL (Mobile Premier League): A mix of social and competitive gaming, trying to balance both worlds.
• Baazi Games (PokerBaazi): Focused heavily on poker and other skill-centric games.

4.2 Indirect Competitors

• WinZo: Slowly pivoting to microdramas and other entertainment fare.
• Games24x7: Owner of My11Circle, now trying to rewrite its story after the ban.

5. Journey and Background of Zupee

5.1 Founding Story

Malhi and Saurabh had a simple but powerful idea: merge the cultural familiarity of traditional board games with digital tech, providing a platform that Indians would instantly connect with. Their timing was impeccable. Users flocked, drawn by a clean interface, easy navigation, and the excitement of strategic play.

5.2 Growth Before the Ban

Zupee’s rise was explosive. With aggressive marketing, slick user experience, and cash incentives, it carved out a dominant spot in India’s gaming startup scene. Investors threw money in, spurred by its rapid user growth and market traction.

5.3 Shift Post-Legislation

The 2025 ban was a harsh wake-up call. As Zupee lays off 170 workers, the company didn’t sulk; they innovated. Launching Zupee Plus and Zupee Studio was not a fallback—it was a calculated pivot. The aim? Move away from RMG and embrace a social, entertainment-centric future while staying compliant and connected to users.

6. Learning for Startups and Entrepreneurs

Zupee’s saga screams adaptability. Here’s the no-nonsense takeaway:

• Diversify Revenue Streams: Betting solely on real-money gaming was a recipe for disaster.
• Prioritize Employee Welfare: Generous severance, health benefits, and rehire priority don’t just boost morale—they build long-term trust.
• Innovate Continuously: The pivot to subscriptions and content shows grit.

For entrepreneurs: expect curveballs, plan for chaos, and don’t lean too hard on one model.

About Foundlanes

At Foundlanes, we don’t sugarcoat startup stories. We dig deep. The piece on “Zupee lays off 170 workers” stands as a candid snapshot of India’s entrepreneurial hustle. In a world where regulation and market shifts constantly collide, we’re here to cut through the noise and equip startups with hard-won lessons that matter.