Delhi NCR-based gaming startup Zupee has nothing more to lose. For one, it laid off its entire workforce of 80-100 employees in October this year, marking the third and final round of layoffs. Then, its announcement of a pivot towards AI has failed to see the light of day.

According to sources, the startup has provided severance pay to the affected employees, covering the period until January 2027, and its October pivot was a veiled attempt to present the impending closure. 

The final round of layoffs coincided with Zupee’s public announcement of its foray into AI, Inc42 has learnt. On October 16, the startup said it was positioning its existing technological capabilities as the foundation for its AI ambitions. However, it did not disclose its new gig.

Further, the October layoffs followed two earlier rounds of job cuts. Zupee sacked around 200 employees 10 months before its October layoff and nearly 170 employees before that. At its peak, the startup employed close to 500 employees.  

Inc42 reached out to Zupee for comment but did not receive a response.

On October 16, Zupee announced that it was exiting the gaming business and would focus on building AI-led ventures. The ailing startup said it would leverage its experience of serving over 200 Mn users to develop AI products for Indian consumers.

“There was no AI plan. It was a damage control exercise to hide the fact that Zupee was winding down its operations. Currently, they have no employees left, barring 3-4 who are working with the founders,” sources told Inc42.

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