India's Zupee acquires Australia-based AI startup Nucanon to launch storytelling vertical

Social gaming platform Zupee has acquired Nucanon, a Sydney-based AI startup, to build a new interactive storytelling vertical as part of its broader pivot beyond real-money gaming.

Zupee said the move aligns with its goal of creating the world’s most advanced platform for interactive story entertainment, where creators can design branching narratives, dynamic characters, and responsive AI-powered worlds that adapt to each player’s choices.

Nucanon’s proprietary world-building engine forms the core of this new initiative. The technology enables stories to evolve in real time, dialogues feel spontaneous, characters retain memory of past interactions, and plotlines change as users make decisions. Each story unfolds uniquely, allowing players to engage as active participants rather than passive viewers.

Following the acquisition, Nucanon’s founding team will relocate to India and lead product innovation from Zupee’s headquarters. Their technology will serve as the foundation of Zupee’s upcoming interactive storytelling products, combining advanced AI with the company’s expertise in gaming and distribution.

Founded in 2018 by Dilsher Malhi and Siddhant Saurabh, Zupee has been one of India’s leading social gaming and entertainment platforms. It originally operated in the real-money gaming (RMG) segment but shifted focus to casual and social games after regulatory changes banned RMG platforms. The company has since diversified into new offerings such as Zupee Plus, a subscription product, and Zupee Studio, which develops short-form original content.

As of FY24, Zupee reported Rs 1,123 crore in revenue, up 35% from Rs 832 crore a year earlier, and posted a net profit of Rs 146 crore, turning profitable for the first time.

The company, which claims over 150 million registered users, has been restructuring operations to strengthen its product and technology base. In September, it laid off around 170 employees, about 30% of its workforce, as part of that realignment.