#e4mExclusive:  Zupee shuts microdrama platform Zupee Studio, NeoAstro amid AI pivot

Gurugram-based gaming startup Zupee has shut down its microdrama platform Zupee Studio and astrology app NeoAstro, with all remaining employees laid off, as the company winds down its gaming operations and pivots towards building artificial intelligence (AI)-led businesses.

Zupee Studio has been permanently discontinued, according to a notice on the platform’s website. Meanwhile, NeoAstro has informed users that it is discontinuing its services and has refunded their remaining wallet balances.

Zupee did not respond to query sent by e4m

The closures come as Zupee looks to move beyond gaming following the government’s ban on real-money gaming (RMG). The company has announced plans to discontinue its remaining free-to-play games and focus on developing AI-led businesses aimed at addressing India’s needs.

Zupee said it would leverage advanced technology to build products that meaningfully contribute to the country’s progress, marking a new phase in its journey after eight years in gaming.

The move brings to a close a transition that began in August 2025, when Zupee discontinued its real-money gaming operations following the enactment of the Promotion and Regulation of Online Gaming Act. The company subsequently shifted to a free-to-play model, continuing to serve players for more than a year before deciding to wind down its remaining games.

The closure of Zupee Studio comes months after Zupee acquired Mumbai-based microdrama startup Vertical TV in a deal valued at under INR 40 Cr, as it sought to strengthen its short-video content offering.

Zupee Studio Shut Down Months After Vertical TV Acquisition

Vertical TV was launched by Mohit Paliwal in 2024 under the umbrella brand The Eight Network. The acquisition was expected to bolster Zupee Studio, the company’s recently launched short-video content platform, as it sought to diversify beyond gaming.

Microdramas, which typically feature short, episodic narratives designed for mobile consumption, have attracted interest from digital entertainment companies looking to capture audiences through bite-sized video content.

Zupee’s acquisition of Vertical TV was part of this broader push into short-form entertainment. However, the company has now discontinued the platform, bringing its microdrama ambitions to an end.

The company also said it was processing eligible refunds for unused subscription periods to users’ original payment methods. If a refund could not be processed through the original payment method, the company said it would contact the affected user to arrange an alternative.

The shutdown marks a reversal of Zupee’s attempt to establish a presence in the microdrama segment through an acquisition, as it prepares to redirect its focus towards AI-led businesses.

NeoAstro Also Discontinues Services

Alongside Zupee Studio, Zupee has discontinued NeoAstro, its astrology-focused application.

In a message to users, NeoAstro said it was discontinuing its services and had refunded the remaining balances in users’ wallets.

“Hi, thank you for being a valued user of NeoAstro. We are discontinuing our services and we have refunded your remaining wallet balance,” the company said in its communication to users.

The message did not provide further details about the reasons behind the shutdown or whether Zupee plans to retain any of the app’s underlying technology or other assets.

The closure of NeoAstro, alongside Zupee Studio, signals a broader withdrawal from the company’s non-gaming consumer offerings as it reassesses its priorities.

While Zupee had explored alternative categories following the disruption to its real-money gaming business, the discontinuation of both applications suggests that the company is now preparing for a more fundamental change in its business strategy rather than continuing to pursue multiple consumer-facing verticals.

With all remaining employees also laid off, according to people familiar with the developments, the shutdowns represent another significant contraction in the company’s operations.

Zupee To Exit Gaming Entirely, Pivot To AI

The discontinuation of Zupee Studio and NeoAstro comes as Zupee prepares to exit gaming altogether.

Founded in 2018, Zupee built its business around mobile versions of traditional Indian games, particularly Ludo. The company said more than 200 Mn people had played on its platform, with the large majority coming from smaller cities and towns. Many of these users were playing games on smartphones for the first time.

The startup’s original business model was built around skill-based games and real-money contests. However, the regulatory changes in 2025 forced it to abandon real-money gaming and shift towards free-to-play offerings.

Following the enactment of the Promotion and Regulation of Online Gaming Act, Zupee discontinued its real-money gaming operations in August 2025. It subsequently continued operating its free-to-play games while exploring other opportunities, including short-video content and astrology.

The company has now decided to discontinue its remaining free-to-play games as well, completing its exit from gaming after eight years.

Zupee said its next phase would centre on developing AI-led businesses that address India's needs. The company intends to use advanced technology to create products that contribute to the country's progress, although further details about the specific businesses, products or timelines have not been disclosed in the information available.

The pivot marks a significant shift for a company that built a large user base through mobile gaming and subsequently attempted to diversify its business after the regulatory disruption.

The shutdowns of Zupee Studio and NeoAstro also highlight the challenges of building alternative consumer internet businesses while navigating a fundamental change in the company's core operations.

Multiple Rounds Of Layoffs At Zupee

Zupee’s latest closures follow multiple rounds of layoffs as the company adjusted to the impact of the RMG ban.

The startup laid off around 200 employees, or approximately 40% of its workforce, in a cost-cutting exercise after the regulatory changes disrupted its core business. The layoffs were announced during a town hall by cofounder and CEO Dilsher Singh Malhi.

The move followed an earlier round in which Zupee laid off around 170 employees, nearly 30% of its workforce.

With the closure of Zupee Studio and NeoAstro and the decision to discontinue its remaining games, all remaining employees have now been laid off, according to people familiar with the developments.

The successive workforce reductions reflect the scale of the restructuring required as Zupee moves away from its original business model. The company’s earlier attempts to diversify into short-video content and astrology have also come to an end, leaving AI-led businesses at the centre of its stated future direction.

Zupee’s Funding And Investor Backing

Zupee has raised approximately $120 Mn in funding to date and counts Z47 Partners, Orios Venture Partners and Nepean Capital among its investors.

The company’s latest move comes amid a wider reset across India's online gaming industry following the ban on real-money gaming. The regulatory shift has forced businesses that previously depended on paid contests to reconsider their products, revenue models and long-term strategies.

For Zupee, the response has progressed from discontinuing real-money gaming to reducing its workforce, experimenting with alternative consumer offerings and, ultimately, deciding to exit gaming entirely.

The closure of Zupee Studio and NeoAstro represents a key part of that transition. The microdrama platform had been positioned as a new avenue for growth following the Vertical TV acquisition, while NeoAstro offered a separate consumer-facing service. Both have now been discontinued.

Zupee’s next chapter will depend on how it translates its stated AI ambitions into businesses and products. For now, the shutdowns mark the end of its gaming and adjacent consumer-app operations as the company prepares to redirect its resources towards artificial intelligence.