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EXCLUSIVE: Gameskraft lays off 120 employees amid ban and former CFO’s fraud scandal
Gameskraft had lodged a police complaint against its former chief financial officer (CFO), Ramesh Prabhu, accusing him of siphoning off hundreds of crores from company accounts to fund personal stock market trades.
Between financial year 2019-20 and 2024-25, Prabhu allegedly transferred around ₹231 crore from company accounts into a personal bank account under his sole control at RBL Bank.
Online gaming firm Gameskraft Technologies has begun a company-wide restructuring that includes the immediate dismissal of about 120 employees, after saying regulatory pressure has forced it to stop business operations. The move comes as the company battles the fallout due to real money gaming ban and a criminal probe into its former chief financial officer, Ramesh Prabhu, who is accused of diverting large sums from company accounts to fund personal stock-market trades.
Sources indicate that the company might layoff more employees from its around 600 workforce during the transition period. “In the spirit of transparency, we want to share that despite our best efforts, the current regulatory landscape has made us completely stop our business and has left us with no choice but to initiate a company-wide restructuring,” the company said.
“After careful deliberation, as part of this restructuring, we will be, as of now, letting go of about 120 Krafters across teams and functions, a decision we make with a very heavy heart. As the business continues to evolve in response to external realities, further structural changes may be required.”
Prithvi Singh, Founder & CEO, Gameskraft told Storyboard18, “This has been one of the most difficult decisions in Gameskraft’s journey. Every single Krafter has played a meaningful role in shaping who we are, and we are deeply grateful for their contributions, passion, and belief in our mission. It is with a heavy heart that we part ways with some of our colleagues. While this step is driven entirely by the external environment and the need to adapt to a new reality, it in no way reflects on their talent or dedication. Our respect for our people remains unchanged, and we will try our best to support them as they transition into their next chapters.”
The company has now offered Medical insurance, Wellness and checks, Priority re-hiring and Outplacement support for impacted employees.
Gameskraft had lodged a police complaint against its former chief financial officer (CFO), Ramesh Prabhu, accusing him of siphoning off hundreds of crores from company accounts to fund personal stock market trades. The Marathahalli police registered a first information report (FIR) on September 9, 2025, citing offences under the Bharatiya Nyaya Sanhita (BNS), including theft, criminal breach of trust, forgery, and falsification of accounts.
Prabhu, 47, a chartered accountant who joined Gameskraft in 2018, was regarded as a key custodian of the firm’s finances until early this year. Prior to joining the company, he co-founded social enterprise Three Wheels United, which provided financing solutions for autorickshaw drivers. His reputation unraveled in March 2025 when he abruptly vanished from office, following an email confession in which he admitted to misusing company funds.
According to the FIR, Prabhu allegedly diverted around ₹231 crore between FY20 and FY25 from Gameskraft’s accounts into a personal account at RBL Bank. Instead of deploying the funds for company investments, he reportedly used them to trade in futures and options (F&O), a high-risk derivatives segment. To conceal the diversions, he allegedly fabricated mutual fund statements and falsified company records, categorizing the transfers as legitimate investments.
His trading bets failed, leading to estimated losses exceeding ₹250 crore. On March 5, 2025, Prabhu sent an email to senior management, admitting to the financial misconduct and asserting that he had acted alone. He has not returned to the office since March 1 and remains untraceable. An internal review by Gameskraft confirmed manipulation of the company’s accounts.
The alleged fraud had a direct impact on Gameskraft’s financials. In its FY25 results, the company reported a 12 percent increase in revenue to ₹3,896 crore, up from ₹3,475 crore in FY24. However, net profit plunged 25 percent to ₹706 crore, weighed down by the ₹270.43-crore exceptional item linked to Prabhu’s actions, as well as higher GST payments following the government’s decision to impose a 28 percent tax on online gaming.
In its filings, the company said Prabhu had “dishonestly” diverted ₹270.43 crore over nearly five years for personal trading activities without authorization. The matter is now under active criminal investigation.
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