Exclusive: Why Zupee’s AI Pivot Was A Smokescreen For Its Shutdown?

Delhi NCR-based gaming startup Zupee has laid off its entire workforce of 80-100 employees in October 2022, marking the third and final round of layoffs. Zupee's announcement of a pivot towards AI has been called into question, with sources suggesting it was a veiled attempt to hide the impending closure. The layoffs followed two earlier rounds of job cuts, which left Zupee with close to 500 employees at its peak.

Zupee announced on October 16 that it was exiting the gaming business and focusing on building AI-led ventures, but has since shut down its astrology platform, NeoAstro, and its microdrama venture, Zupee Studio. The startup entered the microdrama segment and was in advanced discussions to acquire Vertical TV, but both deals ultimately fell through.

Zupee's investors, including Z47 Partners and Nepean Capital, have not responded to inquiries about the startup's remaining cash reserves, assets, and outstanding liabilities.