New Delhi, Nov. 3 -- Social gaming and entertainment firm Zupee has acquired Sydney-based AI-driven interactive storytelling platform Nucanon for an undisclosed amount.
Zupee said the strategic acquisition combines its wide distribution reach with Nucanon's advanced narrative AI technology.
It said the acquisition will help accelerate the development of what Zupee aims to be the world's most advanced platform for interactive story entertainment, enabling creators to craft branching narratives, dynamic characters, and AI-powered worlds that engage audiences at scale.
Dilsher Singh Malhi, founder and chief executive officer of Zupee, said the partnership reflects a shared goal to rethink how stories are created and experienced. "For decades, we've been caught between the emotional pull of films and the agency of games. With Nucanon, we want to explore how AI can understand cause and effect in stories, not just generate them," he said.
Nucanon's team will join Zupee's India headquarters to lead a new interactive storytelling division. The move expands Zupee's focus beyond gaming into AI-driven narrative design.
Nilushanan Kulasingham, chief executive officer of Nucanon, said the company was founded to tackle one of the hardest challenges in interactive media, giving players real agency without breaking narrative flow. "Our goal is to build AI that understands stories, not just writes them. With Zupee's support, we can now expand this vision," he said.
As part of the integration, the company plans to hire across product, design, and engineering functions.
To date, Zupee has raised over $120 million (Rs 1,065 crore) in external funding from investors including WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital Partners, Matrix Partners India, and Orios Venture Partners.
Zupee crossed the Rs 1,000 crore revenue mark in FY24, reporting approximately Rs 1,123 crore in revenue. It also turned profitable, posting a net profit after tax of about Rs 138.8 crore, compared with a loss in the prior year.
Published by HT Digital Content Services with permission from VC Circle.