Social gaming platform Zupee has acquired Australian artificial intelligence (AI) startup Nucanon to establish a new vertical focused on interactive storytelling experiences. The acquisition marks Zupee’s strategic shift toward expanding its social and casual gaming portfolio after exiting the real-money gaming (RMG) segment.
Nucanon Team to Spearhead Storytelling Initiative
Following the acquisition, Nucanon’s founding team will join Zupee’s India headquarters to lead the development of the interactive storytelling product. This move aims to enhance Zupee’s technological and creative capabilities in delivering adaptive, narrative-driven gaming experiences.
To support the new initiative, Zupee plans to expand hiring across product, design, and technology functions. Leveraging Nucanon’s proprietary AI-powered narrative engine, the company intends to launch interactive story experiences for both Indian and global audiences.
AI-Driven Storytelling Technology
Nucanon’s platform enables creators to build immersive and dynamic story environments, powered by AI features such as:
- Branching storylines that evolve based on user choices
- Character memory that adapts to player interactions
- Dynamic plots that shift according to user decisions
These tools are designed to make storytelling more personalized and engaging, positioning Zupee at the intersection of gaming, entertainment, and AI innovation.
Zupee’s Strategic Realignment
Founded in 2018 by Dilsher Singh Malhi and Siddhant Saurabh, Zupee was previously a major player in India’s RMG sector, with over 150 million registered users. However, following regulatory changes and the government’s ban on RMG platforms, the company underwent restructuring in September 2025, resulting in a 30% workforce reduction (around 170 employees).
Since then, Zupee has diversified into subscription-based offerings, such as Zupee Plus, and expanded its content portfolio through Zupee Studio, which produces original short-form entertainment.
Financial Performance
Despite industry challenges, Zupee reported strong financial results in FY24:
- Revenue: ₹1,123 crore, up 35% year-on-year from ₹832 crore in FY23
- Net Profit: ₹146 crore, marking a return to profitability
Summary:
Zupee has acquired Australian AI startup Nucanon to develop an interactive storytelling vertical as part of its pivot toward social and casual gaming. The Nucanon team will lead this initiative from Zupee’s India headquarters, integrating AI-powered tools for adaptive narratives and immersive story experiences. The move aligns with Zupee’s post-RMG strategy and builds on its strong FY24 performance, highlighted by 35% revenue growth and a ₹146 crore profit.
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