Zupee acquires Australian AI startup Nucanon to expand into interactive storytelling

Zupee has announced the acquisition of Nucanon, a Sydney-based innovator in AI-driven interactive storytelling. The acquisition marks a first-of-its-kind collaboration between India and Australia in the digital entertainment sector, bringing together Zupee’s vast distribution reach and Nucanon’s breakthrough narrative AI technology.

The acquisition will help Zupee accelerate its vision of building the world’s most advanced platform for interactive story entertainment. It will create an ecosystem where creators can craft branching narratives, dynamic characters and AI-powered worlds that engage audiences at scale.

Driving the Next Phase of Entertainment Innovation

At the core of Nucanon’s innovation is a proprietary world-building AI engine that aims to redefine how stories are created and experienced. The technology allows stories to unfold naturally, adapting to every choice a user makes. Dialogues feel authentic and spontaneous, characters remember past interactions and plotlines shift in response to each decision.

The result is a story that grows and changes just like real human relationships do. Users can move freely within the world without breaking its flow or structure. Every experience feels unique and meaningful, whether expressed through text, voice or visuals. It is a system designed to make stories feel alive and responsive, turning every player into a true participant rather than a passive viewer.

Dilsher Singh Malhi, Founder and CEO of Zupee, said “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 interactive mix of Videos and Games. And we're going to build it from India for the world.”

"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," said Nilushanan Kulasingham, CEO of Nucanon "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", he added.

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 the company’s scale in gaming & entertainment with cutting-edge AI and creative design.