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Adding to its experiments following India’s ban on real money gaming (RMG), gaming startup Zupee has announced the acquisition of AI storytelling startup Nucanon.
While the financial details of the deal were not disclosed, the acquisition is expected to accelerate Zupee’s push into AI-driven interactive storytelling as it diversifies beyond its core gaming offerings.
In a statement, Zupee said that the Sydney-based company’s proprietary AI engine allows stories to evolve in real time based on user choices — simulating conversations, remembering past interactions and generating unique plot outcomes.
Zupee CEO Dilsher Singh Malhi said the acquisition will accelerate the company’s vision to build “the world’s most advanced interactive story platform,” merging the emotional depth of film with the agency of gaming.
Following the acquisition, Nucanon’s founding team will lead product innovation from Zupee’s India headquarters. The startup further looks to scale its workforce across product, technology and design and welcomes creators and innovators.
Founded in 2023 by Nilushanan Kulasingham, Nucanon is an AI storytelling startup that develops technology for interactive, choice-based narratives. Its proprietary engine enables stories to adapt dynamically to user decisions, with characters that remember past interactions and plots that evolve in real time, blending the emotional depth of films with the interactivity of games.
Meanwhile, Zupee is experimenting with new offerings to ensure sustenance after the blanket ban on real money gaming in India. The startup had to discontinue its paid offerings after the ‘Promotion and Regulation of Online Gaming Act, 2025’ in the last week of August.
As a result, Zupee currently only offers free-to-play games. Beyond gaining, the startup announced the launch of a short format content platform Zupee Studio.
The recently launched platform features 1-3 minute mini-episodes across genres, including romance, drama, thriller, comedy, and more, designed for mobile-first entertainment. Since launch, Zupee Studio has seen over 1 Cr downloads on the Play Store till date.
Besides, the Z47-backed startup also launched short format learning videos app, Zap Learn, earlier in September. The app offers users bite-sized short videos covering topics like finance, government schemes, health and fitness, among others.
Sources told Inc42 that Zupee was also working on a new astrology platform. However, nothing has panned out in this regard till now.
Founded in 2018 by Dilsher Singh Malhi and Siddhant Soni, the Gurugram-based startup initially operated in the RMG segment with its offering trivia and board games like Ludo Supreme and Snakes & Ladders Plus.
On the back of its RMG offerings, the startup turned profitable in FY24, reporting a net profit of INR 146 Cr against a loss of INR 36 Cr in the previous fiscal year. Operating revenue zoomed 37% YoY to INR 1,123 Cr during the year. Zupee is yet to report its financials for FY25.
The post Zupee Acquires AI Storytelling Startup Nucanon appeared first on Inc42 Media.
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