Zupee acquires Australian startup Nucanon

Social gaming platform Zupee has acquired the Australian AI-startup Nucanon to build a new storytelling vertical, for an undisclosed amount. 

With RMG now off the table, the company pivoted to social and casual games, while also experimenting with subscription products such as Zupee Plus and original short-form content under Zupee Studio.

According to an ANI report, Nucanon’s founding team will move to Zupee’s India headquarters and lead the interactive storytelling product offering. 

Zupee will now expand its team across product, technology, and design. It plans to roll out new interactive story experiences leveraging Nucanon’s engine in India and global markets.

Zupee plans to integrate Nucanon’s tech into its platform to offer creators tools to build immersive story experiences. The narrative engine allows storylines to adapt to user choices, characters to remember past interactions, and plotlines to shift in response to decisions.

Founded in 2018 by Malhi and Siddhant Saurabh, Zupee had been among the leading players in the RMG space, claiming over 150 million registered users. 

In September, Zupee laid off around 170 employees, or about 30% of its workforce, as the company restructures operations following the government’s ban on RMG platforms.

Zupee’s revenue from operations grew by 35% year-on-year to Rs 1,123 crore in FY24 from Rs 832 crore in FY23. Moreover, it also turned profitable during the same period, posting a net profit of Rs 146 crore. Its FY25 report has yet to be released.