Gaming platform Zupee buys Australia’s Nucanon to push into AI storytelling
The acquisition gives Zupee access to Nucanon’s proprietary AI engine, which enables dynamic storylines and evolving characters that respond to user choices and allows users to shape story outcomes in real time.
Gaming startup Zupee has acquired Sydney-based artificial intelligence startup Nucanon in a deal aimed at expanding into AI-powered interactive storytelling.
The acquisition gives Zupee access to Nucanon’s proprietary AI engine, which enables dynamic storylines and evolving characters that respond to user choices, according to the release. The technology is designed to make digital narratives more immersive by allowing users to shape story outcomes in real time.
The company’s expansion comes on the heels of the Promotion and Regulation of Online Gaming Act, 2025, which bans all real-money games, which were a key driver of revenue for Zupee.
Dilsher Singh Malhi, Founder and CEO of Zupee, said the move was part of a broader push to build “the world’s most advanced platform for interactive story entertainment.”
Following the acquisition, Nucanon’s founding team will relocate to Zupee’s headquarters in India, where they will lead a new vertical focused on AI-driven storytelling. The company plans to integrate Nucanon’s technology across its entertainment products and expand hiring in product, technology, and design.
Malhi said the partnership with Nucanon would help the company explore new ways to merge storytelling and gameplay.
Nucanon’s CEO Nilushanan Kulasingham said the startup’s technology was designed to give users more control over how stories unfold—a problem that has challenged developers for years. “The holy grail of interactive entertainment is true player agency within a compelling story,” he said. “With Zupee's backing, we now have the resources to take on this challenge at scale.”
Amid the ban on real-money gaming, Zupee announced plans to launch a short-format content platform called Zupee Studio. The monetised platform will feature 1-3 minute mini episodes across various genres such as drama, romance, thriller, and comedy.
According to the Gurugram-based company, Zupee Studio is the first of the many new experiences it is planning to unveil, while continuing to serve its free-to-play users.
Its rival WinZO has ventured into short-form video content with ZO TV, which will focus on micro-dramas and short video content for the Indian market. The company had set up international operations, foraying into Brazil in 2023 and the US this year. This launch was announced right after the real-money gaming ban, providing the firm a cushion against the repercussions that followed.
Edited by Kanishk Singh