Homegrown gaming major Zupee has acquired Sydney-based AI startup Nucanon, marking its foray into the fast-emerging space of interactive storytelling. The company said the move would help it build new experiences that merge the emotional pull of cinema with the interactivity of gaming.
Australia-founded Nucanon has developed a proprietary world-building AI engine that lets users explore digital story worlds where choices and character decisions shape how plots evolve. Unlike other conventional content generators, Nucanon’s technology is designed to create narrative consistency in which every action taken by a player has a logical consequence in the story universe.
Zupee: From games to “living stories”
Zupee founder and CEO Dilsher Singh Malhi said the acquisition reflects the firm’s broader ambition to redefine entertainment.
“We believe the Pixar of the next century won’t emerge through traditional film or animation, but through an interactive mix of videos and games and we’re going to build it from India for the world,” Malhi said.
He added that the integration of Nucanon’s technology will enable creators to design “living stories”, experiences that evolve dynamically based on audience choices.
Nucanon’s AI core
Nucanon’s founder Nilushanan Kulasingham said the startup was created to solve a long-standing problem in narrative design, building an AI that understands stories, not just writes them.
“Our goal is to build an AI that doesn’t just generate text; it understands the story,” Kulasingham said. “With Zupee’s platform and resources, we can now scale this vision globally.”
The startup’s founding team will move to Zupee’s India headquarters, where it will lead the new storytelling vertical. While the deal value was not disclosed, both companies confirmed that the acquisition includes Nucanon’s technology, IP, and core development talent.
India as a creative hub
With the acquisition, Zupee is positioning India as the creative and operational base for its next phase of innovation. The company plans to expand its product, design, and technology teams, inviting creators interested in building narrative-led experiences to collaborate.
Industry observers see this as an India-Australia innovation bridge, combining Australian R&D strength with India’s growing digital entertainment ecosystem. The move also underscores the increasing convergence between gaming and storytelling,a trend global giants like Netflix and Epic Games are betting on.
Zupee’s roadmap includes tools for creators to design branching storylines and interactive worlds that users can experience through text, visuals, or even voice. Characters will remember player interactions, and narratives will evolve organically, creating the sense of a continuously unfolding world.
The company said it plans to develop this ecosystem “from India for the world,” as it diversifies beyond casual gaming into immersive entertainment.
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