Gurgaon-based gaming platform Zupee is laying off around 170 employees, which is about 30% of its workforce, following India’s new ban on real-money gaming (RMG).
- The layoffs are part of a broader business realignment to comply with the Promotion and Regulation of Online Gaming Act, 2025, which prohibits games involving monetary stakes.
- Zupee says it will shift focus to free-to-play social games, short-form video content (via Zupee Studio), and subscription products as part of its new strategy.
What the Company Is Offering Affected Employees
- Severance packages including pay in lieu of notice period.
- Additional financial support linked to years of service; for many, this may translate into up to six months of support during the transition.
- Health insurance coverage will continue for the full term, even post-exit.
- A ₹1 crore medical support fund has been set up for the departing staff.
- Priority rehiring consideration for those impacted when new roles open up.
Why This Is Happening
- The ban on real-money gaming under the new regulatory act drastically changed Zupee’s business model, making many of its core revenue streams non-operational.
- To adapt, Zupee is restructuring and refocusing on business lines that comply with new law: social games (non-cash), entertainment content, subscriptions etc.
Implications & What to Watch
- Zupee’s revenues in FY24 were ~₹1,123 crore, and it had posted profit (PAT ~₹146 crore) for FY24. Losing the RMG segment could affect its margin and growth unless new monetization picks up.
- Investor sentiment and funding prospects may be influenced by how quickly Zupee can pivot successfully to its new model.
- Competitors in RMG are also laying off employees; Zupee joins several others in facing regulatory pressure and workforce reductions.
