In a significant move to consolidate its lead in the “mobile-first” entertainment space, gaming giant Zupee has officially acquired the microdrama startup Vertical TV for ₹40 crore.
Announced on February 3, 2026, the acquisition is part of Zupee’s aggressive diversification strategy following its pivot from real-money gaming toward a holistic “social entertainment” ecosystem.
1. The Deal: Scaling “Zupee Studio”
The acquisition is intended to supercharge Zupee Studio, the company’s short-form content hub launched in late 2025.
- Transaction Value: The ₹150 crore deal (inclusive of performance-based earn-outs) sees Zupee taking 100% control of Vertical TV’s IP and creator network.
- The “Vertical” Edge: Vertical TV specialized in high-intensity, 1–3 minute “mini soap operas” shot specifically for the 9:16 smartphone aspect ratio.
- Talent Integration: Vertical TV’s core production team will join Zupee’s Gurugram headquarters to lead the “Originals” slate for 2026.
2. Why Microdramas? The “Binge-Lite” Revolution
Microdramas (or Duanju) have evolved from a social media trend into a serious $500 million market in India, particularly in Tier-2 and Tier-3 cities.
- Engagement Levels: Internal Zupee data suggests microdrama engagement closely mirrors gaming—users who watch one episode have an 85% probability of bingeing the entire 50-episode season.
- Monetization: Unlike influencer-led short videos, microdramas allow for high-margin revenue models, including:
- Pay-per-episode: Users pay as little as ₹2 to unlock cliffhanger finales.
- Zupee Plus: Integration into Zupee’s ₹599/quarter subscription plan.
- Branded Content: Narrative integrations where brands act as plot catalysts within the story.
3. The Technology: AI Meets Storytelling
The Vertical TV acquisition is designed to work in tandem with Zupee’s November 2025 purchase of Nucanon, an Australian AI startup.
| Feature | Implementation Goal |
| Interactive Plots | Using Nucanon’s AI, Vertical TV stories will now allow users to choose the ending. |
| Localization | AI-powered dubbing and lip-syncing to translate regional microdramas into 12+ Indian languages instantly. |
| Hyper-Personalization | A “For You” feed that learns whether you prefer revenge thrillers, secret romances, or family dramas. |
4. Market Context: A $5 Billion Horizon
Industry experts project the Indian microdrama market to surpass $5 billion by 2029.
- The “Chai Line” Content: As noted by Zupee’s leadership, the goal is to provide “complete emotional journeys in the time it takes to stand in a chai line.”
- Competition: Zupee’s move puts it in direct competition with dedicated platforms like Story TV, ReelShort, and traditional giants like JioStar, which are also experimenting with snackable formats.
Conclusion: Gaming the Narrative
By acquiring Vertical TV, Zupee is effectively “gamifying” the television experience. For a company that once relied on Ludo and Carrom, the future now lies in interactive fiction. In 2026, the battle for the Indian smartphone screen isn’t just about who has the best game, but who can deliver the most addictive 60-second cliffhanger.
