Zupee restructures business to comply with new gaming law
India based online social gaming and entertainment platforms, Zupee, has announced a major restructuring to align with the recently introduced Promotion and Regulation of Online Gaming Act, 2025. As part of this realignment, the company will shift its focus to culturally rooted social games and short video content while reducing its workforce by 170 employees, nearly 30 percent of its staff strength.
Workforce reduction and employee support
According to Storyboard18, Dilsher Singh Malhi, Founder and Chief Executive Officer of Zupee, said the decision was necessary to adjust to the new regulatory framework. He acknowledged the contribution of employees leaving the organisation and assured them of strong support during the transition.
To ease the impact, Zupee has introduced a relief package for departing staff. The plan provides extended financial support beyond contractual notice periods, with additional compensation based on years of service. In some cases, employees will receive up to six months of financial security.
The company will also maintain health insurance coverage for all affected staff for the full policy term. In addition, Zupee has set up a ₹1 crore ($113,200) medical support fund to provide added protection for outgoing employees and their families.
The organisation has further committed to career assistance. Departing employees will receive priority consideration for future roles within Zupee. A dedicated team will also collaborate with industry stakeholders to connect them with meaningful job opportunities.
Strategic shift
Zupee plans to expand its portfolio by focusing on culturally inspired social games that resonate with Indian audiences. The company will also strengthen its short video content offerings as part of a broader entertainment strategy.
This move reflects Zupee’s efforts to build a resilient and sustainable business model under the evolving regulatory environment. With the new law redefining the boundaries of online gaming in India, the company sees culturally aligned content as a way to deepen its engagement with users while staying compliant.
Large user base and future growth
Zupee currently has more than 150 million registered users across India. The company believes that by strengthening its offerings in social and cultural entertainment, it can continue to grow its audience and remain relevant in a changing market.
Despite the workforce reduction, Zupee’s management has expressed confidence in the company’s direction. Malhi emphasised that the vision of reimagining social gaming rooted in Indian heritage remains unchanged. The organisation aims to deliver enjoyable digital experiences while adapting to new regulations.
Regulatory environment driving change
The restructuring comes in response to the Promotion and Regulation of Online Gaming Act, 2025, which has introduced stricter compliance requirements for operators in India. Companies across the sector are reviewing their business models to ensure alignment with the law.
Zupee’s proactive measures highlight the impact of the regulatory framework on both operations and workforce structures. By focusing on social and culturally driven content, the company aims to balance compliance with sustainable growth.
