In recent weeks, Microsoft has been in talks to invest in India’s play-to-find gaming platform and has proposed more than $100 million in funding, two people familiar with the matter told TechCrunch, the latest in a series of bets by the Windows maker to expand its cloud business in key overseas markets.
The two companies have not reached an agreement and there is a reasonable possibility that the agreement will not be implemented, the public warned. A team at Microsoft expressed concerns about the optics around the bet and recommended the global tech giant walk away from the deal, according to a person briefed on the matter.
Zupe declined to comment. Microsoft did not respond to a request for comment late last month. Like other startups that Microsoft has invested in India, including Oyo, the Zuppe deal wanted startup Azure and other Microsoft cloud services as part of the deal, two people familiar with the matter said.
New Delhi-headquartered Zuppi — which has raised more than $120 million to date, including about $100 million in a Series B that closed in January this year — makes what it describes as a “skill-based casual game.” Last valued at $600 million, the company has amassed more than 70 million downloads across 12 games, including themes around cricket, football, chess, rummy and board titles.
In January, it formed what it described as a “first-of-its-kind strategic” partnership with Jio Platforms, India’s largest telecom operator with over 420 million subscribers. The two organizations will work to build an ecosystem that facilitates rapid and efficient development and distribution of products and services, Zuppe said in an earlier press release.
