After its former CFO, Ramesh Prabhu, allegedly missused Rs 250 crore of company funds to engage in personal trading in the futures and options (F&O) segment, Bengaluru-based online gaming company Gameskraft Technologies is currently facing a significant financial scandal.
In addition to causing large losses, the illegal transactions, which allegedly occurred between FY20 and FY25, also revealed gaps in Gameskraft's internal governance.
Key Highlights
- Gameskraft's former CFO, Ramesh Prabhu, allegedly diverted ₹270.43 crore into unauthorized F&O trading.
- Prabhu's actions led to over ₹250 crore losses; company filed FIR and wrote off ₹270.43 crore.
Prabhu allegedly admitted to misusing company funds for personal trading in a voluntary confession email to the company in March 2025, which sparked the controversy. Media reports claim that Rs 231.39 crore was moved to Prabhu's personal RBL Bank account, which is solely under his control, and that it was used for F&O trading. He allegedly produced phony mutual fund statements and fabricated company records to hide his tracks, passing off the money that had been diverted as real investments.
A trained chartered accountant, Prabhu began working for Gameskraft in 2018 and eventually became the company's chief financial officer. Although his precise motivation is still unknown, reports indicate that he might have wanted to make money and give the money back, but the trades apparently caused significant losses, which forced him to confess.
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Under several provisions of the Indian Penal Code, including theft, criminal breach of trust, forgery, and falsification of accounts, Gameskraft has responded by filing a formal complaint against Prabhu at the Marathahalli police station. Because of these irregularities, the company wrote off Rs 270.43 crore in the financial statements for FY25.
Revenue for Gameskraft increased by 12% year over year to Rs 3,896 crore in FY25 from Rs 3,475 crore in FY24. Its earnings decreased by 25% to Rs 706 crore at the same time. The company also listed Rs 270 crore as exceptional items in the FY25 financial report.
Gameskraft is already dealing with regulatory changes as a result of the government's Promotion and Regulation of Online Gaming Act, 2025, which outlawed real-money online gaming. The incident occurs at a difficult moment for the company. The financial impact was exacerbated when platforms owned by the company, such as RummyCulture, Gamezy, Pocket52, and Ludo Select, were forced to halt operations.
