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RMG ban pushes Zupee to cut 170 jobs

EntrackrEntrackr · 20d ago
RMG ban pushes Zupee to cut 170 jobs
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.

Gameskraft lays off 120 employees

EntrackrEntrackr · 13d ago
Gameskraft lays off 120 employees
Medial

Gameskraft, one of India’s largest real-money gaming companies, has laid off about 120 employees across teams as part of a restructuring exercise triggered by the government’s blanket ban on online money games. The layoffs come at a turbulent time for the firm, which is also reeling from a fraud scandal involving former CFO Ramesh Prabhu, who allegedly siphoned off Rs 270 crore over nearly five years. An FIR has been filed against him following the company’s complaint at Bengaluru’s Marathahalli police station. Affected employees will receive severance pay, leave encashment, and extended group health insurance until March 2026, with an option to convert policies to individual plans. Founder Prithvi Singh said the decision was forced by “external realities” and not employee performance, adding that Gameskraft would support outgoing staff during their transition. Founded in 2017, Gameskraft had been one of the fastest-growing real-money gaming firms, operating platforms like Rummyculture and Pocket52, both of which have now been shut following the new law. According to TheKredible, the company’s FY25 net profit dropped 25% to Rs 706 crore because of the 28% GST, increased taxes, and one-time accounting changes. However, the company’s revenue rose 12% to Rs 3,896 crore from Rs 3,475 crore in FY24. Gameskraft joins other gaming firms downsizing after the ban. A23 Rummy (Head Digital Works) cut 500 jobs, Zupee axed 170, MPL is shrinking up to 60% of staff, and Baazi Games has reduced headcount by 200. Games24x7 is reportedly laying off 70% of its workforce.

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