RMG Enters Layoffs Phase, Blue Tokai's Big Round & More

Layoffs Hit RMG Giants

India’s gaming ecosystem is still in the throes of the biggest reset it has ever seen as more and more companies scale down in the wake of the ban on real money gaming. Indeed, the scene looks more like a slasher or horror title than a fantasy league. The government’s crackdown on RMG means layoffs are piling up.

Layoffs Season: The pink slips are flying. Games24x7 kicked off its second round of layoffs this year, a clear sign of the deepening crisis. PokerBaazi, too, is reportedly about to slash its workforce by half, which mirrors recent cuts at gaming unicorn MPL. The message is clear: the party is over, and the house is clearing out.

Big Money Backs Out: The fallout isn’t just hitting employees; it’s rattling investors. In a power move, Nazara Technologies pulled the plug on its deal to acquire a bigger piece of PokerBaazi. More and more investors are expected to write off their entire investment, if not walk away from deals that were in the works. Indeed, the game has fundamentally changed.

KRAFTON Doubles Down: As evidenced by this plot twist amid the chaos. KRAFTON, the gaming major behind PUBG, is looking to invest $50 Mn into India’s gaming ecosystem annually. This is a massive bet on a future beyond RMG. KRAFTON-backed Ginger Games announced that it is kickstarting operations to build high-quality mobile games.

While the regulatory storm, fueled by the ban, has decimated the pay-to-play fantasy apps and card games, the South Korean gaming giant sees a different prize. KRAFTON is betting on esports and casual gaming, proving that while one level of Indian gaming has ended in a “Game Over,” another is just beginning.

Here’s how the major investors are planning their next steps as the RMG ecosystem crumbles

From The Editor’s Desk

Blue Tokai Nets $25 Mn: The specialty coffee chain has raised around INR 220 Cr in a bridge round from existing backers. Founded in 2013, Blue Tokai Blue Tokai operates four roasteries and more than 100 physical outlets across major metro cities.

BYJU’S Vs QIA: Issuing an interim injunction in favour of the wealth fund, the Karnataka HC has directed Byju Raveendran to not sell or transfer any assets mentioned in the QIA’s plea. The investor has moved the HC to seek the enforcement of a $235 Mn arbitral award.

Elev8 Closes $160 Mn Fund: The VC firm has marked the final close of its debut fund at INR 1,400 Cr. The fund aims to back 12-14 startups from sectors such as consumer tech, SaaS, fintech, and healthtech, and will dish out cheques in the range of $10 Mn to $15 Mn.

Zomato To Rejig Biz Model? The foodtech major is gathering feedback from restaurants over proposed alterations to its commission models. This follows Rapido last month debuting its food delivery service “Ownly”, which currently charges a flat commission fee of INR 25 per order, plus taxes.

LEAP India’s FY25 Show: The IPO-bound supply chain solutions provider’s net profit remained almost flat at INR 37.5 Cr in the fiscal under review compared to INR 37.1 Cr in FY24. Meanwhile, operating revenue zoomed 27.8% YoY to INR 466.4 Cr in FY25.

Flipkart’s Majority Stake In Pinkvilla: The ecommerce major has acquired a majority stake in the digital media platform’s India arm for an undisclosed sum. With this, Flipkart will be looking to strengthen its appeal among younger audiences and leverage Pinkvilla’s presence and content expertise.

UPI Touches Record High: The digital payments infrastructure clocked a record 2,000 Cr transactions in August, up 2.8% month-on-month. Meanwhile, UPI also processed transactions worth INR INR 24.85 Lakh Cr, down 1% from INR 25.08 Lakh Cr in July.

OpenAI Mulls India Data Centre: The AI is looking to set up a data centre in the country. The company is said to be looking for local partners to set up the data centre, which would have at least 1 GW capacity. The location has not been finalised yet.

Inc42 Startup Spotlight An AI Twist To Robotics

Robotics seems to be the flavour of the season. However, their application remains limited in dynamic, unpredictable and real-world environments. NeuralZome Cybernetics is solving this problem by building no-code, teachable AI agents designed for real-world autonomous robots.

Pioneering Robotic Autonomy: The startup has built AI agents that can help robots operate with minimal human intervention in highly unpredictable environments. Its AI system, NeuralPilot, can power 220 kg robots with speeds of up to 10 km/h. NeuralZome has also developed an off-road autonomous ATV, which needs little human intervention.

Scaling With Precision: Taking steady steps, the startup is currently piloting its offerings with multiple entities. Baked by 8X Ventures and Turbostart, the startup aims to make money by selling its Robot-as-a-Service (RaaS) model, by bundling both hardware and AI, to diverse industries such as precision agriculture and rugged logistics.

With an eye on becoming a leader in the off-road autonomy segment, can NeuralZome’s AI twist unlock the potential of robotics beyond the factory floor?

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