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RMG ban pushes Zupee to cut 170 jobs

Entrackr · 6m ago

Medial

Real-money gaming (RMG) platform Zupee has laid off around 170 employees, or about 30% of its workforce, as the company restructures operations following the government’s ban on RMG platforms. “This has been a tough call for us, but was necessary to adapt to the new regulatory framework. Our colleagues who are leaving us have been an integral part of Zupee’s journey and we will always remain thankful for their contribution in building Zupee into what it is today. We are providing comprehensive support to help our colleagues step seamlessly & with confidence into their next roles,” said Dilsher Singh Malhi, Founder & CEO of Zupee. As part of the separation package, Zupee is offering affected employees severance pay of up to six months, extended health benefits, and a Rs 1 crore medical support fund. The company has also promised priority rehiring for those impacted. The layoffs at Zupee come weeks after other RMG companies, including Head Digital Works (A23), MPL, Baazi Games, and Games24x7, cut hundreds of jobs following the ban. A23’s parent company recently let go of nearly 500 employees, or two-thirds of its staff. 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. With RMG now off the table, the company is pivoting to social and casual games, while also experimenting with subscription products such as Zupee Plus and original short-form content under Zupee Studio. 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. The RMG ban has triggered a wave of layoffs across the sector, forcing companies to explore ad-driven and subscription-led monetisation models. Like Zupee, WinZo has forayed into microdramas, while Dream11’s parent has entered the wealth management space with its new app Dream Money.