Layoffs · Consumer Internet & Media

Zupee cuts 200 jobs after realigning operations

By Startup Enthusiast · 30 January 2026

What they do

Zupee is an online gaming and esports platform

The company laid off about 200 employees to cut costs following a regulatory ban on real money gaming

This follows a previous round of cuts in September and industry-wide reductions across the sector

Zupee has conducted its second round of layoffs affecting approximately 200 employees.
The job cuts were made to realign operations and cut costs for the company.
These reductions follow a regulatory ban on real money gaming (RMG) imposed by the government.
A previous round of layoffs occurred in September, which affected around 170 employees.
After these cuts, Zupee's total workforce stands at approximately 350 employees.
The layoffs impacted teams including operations, technology, marketing, and customer support.
Founder and CEO Dilsher Singh Malhi confirmed the job cuts to the public.
Storyboard first reported the details regarding these specific job cuts.

The layoffs were triggered by the Promotion and Regulation of Online Gaming Act passed in August 2025.
This act banned real money gaming (RMG), forcing companies to pivot their business models.
The industry saw significant headcount reductions with approximately 2,000 people fired across firms.
Major competitors like Dream Sports, MPL, and Winzo also pivoted to free-to-play models.
Zupee raised a total of $122 million from investors prior to these operational changes.

Zupee is pivoting its focus toward free-to-play games and esports offerings.
The company launched Zupee Studio, a new short-video platform for micro dramas.
Micro dramas are defined as episodic content with runtimes between 1 and 3 minutes.
The company previously operated in the real money gaming space before the regulatory ban.
Zupee aims to retain users through entertainment formats that do not involve gambling.
The shift represents a strategic response to the new legal landscape for online gaming.
Competitors in the sector are similarly moving away from real money gaming products.

Zupee will continue to develop its free-to-play and esports product lines.
The company is expanding its micro drama offerings via Zupee Studio.
Management is focused on stabilizing operations within the reduced workforce size.