Gameskraft Technologies Faces Financial Scandal

Bengaluru-based online gaming company Gameskraft Technologies is currently facing a significant financial scandal. The former CFO, Ramesh Prabhu, is accused of misappropriating Rs 250 crore of company funds for personal trading in the futures and options (F&O) segment. This series of unauthorized transactions, reported to have occurred between FY20 and FY25, has not just resulted in considerable losses but has also revealed vulnerabilities in Gameskraft’s internal governance.

The issue became public after Prabhu sent a voluntary confession email to the company in March 2025, acknowledging that he misused company resources for personal trading. As reported in the media, Rs 231.39 crore was transferred to Prabhu’s personal account at RBL Bank, where he had sole control, and was subsequently utilised for F&O trading. To conceal his actions, it is claimed he falsified company records and produced fake mutual fund statements to portray the misappropriated funds as legitimate investments.

Background on Ramesh Prabhu

Ramesh Prabhu, who is a Chartered Accountant by profession, joined Gameskraft in 2018 and worked his way up to the position of CFO. Although the exact reasons for his actions remain uncertain, reports indicate that he possibly aimed to generate profits and eventually return the capital; however, the trades allegedly resulted in significant losses, leading to his eventual confession.

Legal Actions Taken Against Prabhu

In light of these events, Gameskraft has lodged an FIR against Prabhu at the Marathahalli police station. This legal action involves multiple sections of the Indian Penal Code, encompassing theft, criminal breach of trust, forgery, and falsification of accounts. Additionally, the company has reported a write-off of Rs 270.43 crore in its FY25 financial statements due to these financial irregularities.

Financial Impact on Gameskraft

Despite this turmoil, Gameskraft has indicated a 12% year-on-year rise in its revenue, reaching Rs 3,896 crore in FY25 compared to Rs 3,475 crore in FY24. Nonetheless, the company’s profits took a hit, declining by 25% and settling at Rs 706 crore. The financial report for FY25 also highlighted Rs 270 crore as exceptional items related to these issues.

Challenges from Regulatory Changes

This incident arrives at a precarious moment for Gameskraft, already affected by regulatory transformations due to the government’s Promotion and Regulation of Online Gaming Act, 2025. This legislation imposed a ban on real-money online gaming, forcing the company’s platforms, such as RummyCulture, Gamezy, Pocket52, and Ludo Select, to suspend their operations, further exacerbating the financial repercussions.