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Zupee Acquires Australian AI startup Nucanon To Expand Into Interactive Storytelling

Zupee has acquired Sydney-based Nucanon to strengthen its focus on AI-driven storytelling and deepen India–Australia collaboration in digital entertainment.

MM Desk by MM Desk
November 3, 2025
in Business
A A
Zupee Acquires Australian AI startup Nucanon To Expand Into Interactive Storytelling

Zupee, India’s social gaming and entertainment platform, has announced the acquisition of Nucanon, an Australian startup specialising in AI-driven interactive storytelling. The move marks one of the first India–Australia collaborations in digital entertainment, combining Zupee’s distribution reach with Nucanon’s narrative AI technology.

The acquisition will help Zupee accelerate its vision of building a global platform for interactive story entertainment. It will create an ecosystem where creators can craft branching narratives, evolving characters and AI-powered worlds that engage audiences at scale.

Driving the next phase of entertainment innovation

At the heart of Nucanon’s innovation is a proprietary world-building AI engine that redefines how stories are created and experienced. The technology allows narratives to unfold dynamically, adapting to every choice a user makes. Characters remember past interactions, dialogues feel authentic, and plotlines shift in response to player decisions.

Each experience becomes unique, allowing users to move freely within the story without breaking its flow or structure. Whether expressed through text, voice or visuals, the system is designed to make stories feel alive and responsive, turning every player into a true participant rather than a passive viewer.

A new chapter for interactive entertainment

Following the acquisition, Nucanon’s founding team will lead product innovation from Zupee’s India headquarters. The company’s proprietary technology will become the foundation of a new interactive storytelling vertical within Zupee, combining gaming, AI and creative design.

This collaboration reinforces India’s growing position as a global hub for AI-led storytelling and innovation. By bringing advanced technology and creative talent together, Zupee aims to build next-generation storytelling experiences from India for the world.

“At Zupee, we have always liked to push the boundaries on innovation. We’re very excited about partnering with Nucanon and building the future of how humans will experience stories. For decades, we’ve been trapped between two worlds: the emotional depth of cinema and the agency of games. With Nucanon we want to crack something fundamental, which is not just generating content but understanding narrative causality. We believe the Pixar of the next century won’t emerge through traditional film or animation, but rather through an interactive mix of videos and games. And we’re going to build it from India for the world,” said Dilsher Singh Malhi, Founder and CEO, Zupee.

“The holy grail of interactive entertainment is true player agency within a compelling story. This is the challenge that has stumped the industry for decades, and it’s the one we were founded to solve. Our goal is to build an AI that doesn’t just generate text, it understands the story. With Zupee’s backing, we now have the resources to take on this challenge at scale,” said Nilushanan Kulasingham, CEO, Nucanon.

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