Gameskraft CFO siphoned Rs 250 Cr for F&O trading

Bengaluru-based online gaming firm Gameskraft Technologies is grappling with a major financial scandal after its former CFO, Ramesh Prabhu, allegedly diverted Rs 250 crore of company funds to personally trade in the futures and options (F&O) segment. 

The unauthorized transactions, which reportedly took place between FY20 and FY25, have not only led to significant losses but also exposed weaknesses in internal governance at Gameskraft.

The controversy came to light after Prabhu reportedly sent a voluntary confession email to the company in March 2025, admitting to misusing company funds for personal trading. According to the media reports,  Rs 231.39 crore was transferred to Prabhu’s personal account at RBL Bank, under his sole control, and used for F&O trading. To cover his tracks, he allegedly falsified company records and created fake mutual fund statements, presenting the diverted money as legitimate investments.

Prabhu, a Chartered Accountant by training, had joined Gameskraft in 2018 and rose to the position of CFO. While the exact motive remains unclear, reports suggest that he may have intended to generate profits and return the capital, but the trades reportedly resulted in substantial losses, compelling his confession.

In response, Gameskraft has filed an FIR against Prabhu at Marathahalli police station under multiple sections of the Indian Penal Code, including theft, criminal breach of trust, forgery, and falsification of accounts. The company has written off Rs 270.43 crore in the FY25 financial statements due to these irregularities.

Gameskraft has reported a 12% year-on-year increase in its revenue to Rs 3,896 crore in FY25 from Rs 3,475 crore in FY24. At the same time, its profits shrank 25% to Rs 706 crore. In the financial report for FY25, the company has also mentioned Rs 270 crore as exceptional items.

The incident comes at a challenging time for Gameskraft, which has already been hit by regulatory changes following the government’s Promotion and Regulation of Online Gaming Act, 2025, which banned real-money online gaming. Platforms under the company, including RummyCulture, Gamezy, Pocket52, and Ludo Select, were forced to suspend operations, compounding the financial impact.