Gameskraft ex-CFO accused of diverting ₹250 crore for unauthorised trading

Bengaluru-based Gameskraft filed a police case against ex-CFO Ramesh Prabhu after he allegedly diverted Rs 250 crore into personal accounts for unauthorised derivatives trading

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Online gaming company Gameskraft Technologies is facing a major corporate governance crisis after its former chief financial officer allegedly misappropriated ₹250 crore in company funds for unauthorised derivatives trading over a five-year period.

 

The Bengaluru-based firm discovered the alleged fraud in March 2025 when former CFO Ramesh Prabhu sent a voluntary confession email to the company, according to media reports. The unauthorised transactions reportedly took place between fiscal years 2020 and 2025, during which Prabhu allegedly diverted ₹231.39 crore to a personal account at RBL Bank for futures and options trading.

 

To conceal the misappropriation, Prabhu allegedly falsified company financial records and created fraudulent mutual fund statements, presenting the diverted funds as legitimate corporate investments, the reports said.

 

The Bengaluru city police registered the case on 9 September after Gameskraft filed criminal charges against Prabhu. The firm wrote off Rs 270.43 crore in its fiscal 2025 financial statements following the discovery of the alleged unauthorised trading activities spanning five years.

 

The company lodged a police complaint against Prabhu, 47, at Marathahalli police station under multiple sections of the Indian Penal Code, including theft, criminal breach of trust, forgery, and falsification of accounts. A chartered accountant, Prabhu joined Gameskraft as CFO in 2018 and had earlier co-founded Three Wheels United, a fintech start-up providing loans to autorickshaw drivers.

 

According to the first information report, Prabhu acknowledged in his March confession email that losses from equity futures and options trading exceeded ₹250 crore. The complaint stated he conducted these activities “without any disclosure or approval” and maintained sole control over the account used to divert company funds for personal use.

 

In the FIR, the accused said he would “take full responsibility” for his conduct, including for breaching the trust reposed in him as Group CFO. The FIR added that Prabhu claimed “no current or former employees” were aware of his activities.

 

Gameskraft reported a 12 per cent year-on-year increase in revenue to ₹3,896 crore in FY25 from Rs 3,475 crore in FY24, according to Entrackr. At the same time, its profits shrank 25 per cent to ₹706 crore. In its FY25 financial report, the company also listed ₹270 crore under exceptional items.

 

The incident comes at a difficult time for India’s gaming industry, which is grappling with heightened regulatory scrutiny and concerns over financial transparency. The sector has attracted significant venture capital investment in recent years, making strong governance practices crucial for maintaining investor confidence.

 

At least four real money gaming companies lost their unicorn status after the enactment of the new online gaming act last month, which banned all forms of real money games such as ludo, poker, rummy, and fantasy sports.

 

The affected firms include Dream11, Games24x7, Gameskraft, and Mobile Premier League, according to the ASK Private Wealth Hurun India Unicorn and Future Unicorn Report 2025.

 

The regulatory impact has extended beyond unicorns to high-growth prospects. Zupee, previously valued between $500 million and $1 billion, and WinZO Games, valued at $200–500 million, also saw their billion-dollar aspirations undermined by the sweeping ban.

 

Valuations dropped after the shutdown of core real money gaming operations following the enactment of the Promotion and Regulation of Online Gaming Bill, 2025.