Real-Money Gaming Layoffs at Zupee

Real-money gaming platform Zupee has made the difficult decision to reduce its workforce by about 170 employees, which accounts for roughly 30% of its team. This restructuring is a response to the government’s ban on real-money gaming platforms. Dilsher Singh Malhi, the Founder and CEO of Zupee, expressed that this was a challenging yet necessary move to align with the new regulatory framework. He acknowledged the contributions of departing colleagues, recognising their vital role in the company’s journey and thanking them for their efforts in building Zupee to its current stature. Comprehensive support is being provided to assist these individuals in transitioning smoothly into their future roles.

Severance and Support Packages for Laid-Off Employees

As part of the separation agreement, Zupee is offering affected employees a severance package that includes up to six months of pay, extended health benefits, and a medical support fund of Rs 1 crore. Furthermore, the company is prioritising rehiring for those impacted.

The layoffs at Zupee follow a trend in the real-money gaming industry, where other companies such as Head Digital Works (A23), MPL, Baazi Games, and Games24x7 have also had to scale back their operations, resulting in hundreds of job losses after the ban. Recently, A23’s parent company terminated nearly 500 employees, which is about two-thirds of its workforce.

Zupee’s Historical Context and Future Plans

Zupee, founded in 2018 by Malhi and Siddhant Saurabh, has established itself as a prominent player in the real-money gaming sector, boasting over 150 million registered users. With the shift in focus away from real-money gaming, the company is now concentrating on developing social and casual games. Additionally, Zupee is exploring subscription-based products like Zupee Plus and producing original short-form content through Zupee Studio.

Zupee has witnessed a 35% increase in operational revenue year-on-year, climbing to Rs 1,123 crore in FY24 from Rs 832 crore in FY23. Notably, the company achieved profitability during the same period, reporting a net profit of Rs 146 crore, although the FY25 report is forthcoming.

The ban on real-money gaming has sparked a significant wave of job reductions across the industry, compelling companies to investigate ad-driven and subscription-based monetisation strategies. Alongside Zupee, other firms like WinZo have ventured into microdramas, while the parent company of Dream11 has expanded into wealth management with the launch of its new app, Dream Money.