If you’ve been following startup news in India, the Gameskraft CFO fraud is one story that has captured everyone’s attention.
Bengaluru-based Gameskraft Technologies, a well-known online gaming company, is now at the center of a massive financial scandal.
The culprit, according to reports, is none other than the company’s former Chief Financial Officer, Ramesh Prabhu, who allegedly diverted around ₹270 crore into unauthorized futures and options (F&O) trading, resulting in estimated losses exceeding ₹250 crore.
This isn’t just a story about lost money. It’s a cautionary tale about trust, oversight, and corporate governance in the rapidly growing Indian startup ecosystem. Investors, employees, and stakeholders are left questioning how such a massive fraud went undetected for years.
Who is Gameskraft CFO Ramesh Prabhu?
Gameskraft Technologies is a Bengaluru-based gaming startup that specializes in online games and esports platforms. Founded in the early 2010s, it quickly gained popularity for its engaging games and competitive platforms. With increasing revenues and investor backing, it became a prominent player in the Indian gaming ecosystem.
To understand the gravity of this scandal, it’s important to know the man at the center. Ramesh Prabhu is a Chartered Accountant with years of experience in finance and startups.
Before joining Gameskraft in 2018 as CFO, he co-founded Three Wheels United, a fintech venture providing loans to autorickshaw drivers. The initiative was widely praised for its social impact.
At Gameskraft, Prabhu was responsible for all financial operations, investor relations, and accounting.
He was considered a trusted custodian of corporate finances, which made the alleged fraud particularly shocking. By March 2025, Prabhu reportedly stopped showing up to work. Internal audits and investigations then revealed large-scale unauthorized fund transfers, raising red flags about financial mismanagement.
How ₹250 Crore Was Allegedly Diverted?
The FIR filed against Gameskraft CFO Ramesh Prabhu provides a clear picture of how the alleged fraud was executed.
According to reports, around ₹231 crore was transferred from company accounts into Prabhu’s personal account at RBL Bank. These funds were then used for high-risk futures and options (F&O) trading, without any authorization from the company.
To conceal these transactions, Prabhu is accused of:
- Falsifying company financial statements
- Creating fake mutual fund documents
- Presenting diverted funds as legitimate corporate investments
The fraud reportedly spanned five years, from FY 2019–20 to FY 2024–25. This wasn’t a one-time lapse but a systematic misappropriation of funds that went undetected for years, raising serious questions about internal audits and governance.
Timeline of Events
Here’s a simplified timeline of the Gameskraft CFO fraud:
- 2018: Ramesh Prabhu joins Gameskraft as CFO.
- 2019–2020: Alleged diversion of funds into F&O trading begins.
- 2023–2024: Company growth continues, but irregular transactions go unnoticed.
- March 2025: Prabhu reportedly stops reporting to work; internal audit initiated.
- September 2025: FIR filed against Prabhu for criminal breach of trust and financial fraud.
This timeline shows how a lack of continuous monitoring allowed the fraud to continue for five years, underscoring the importance of real-time auditing and checks in startups.
Gameskraft Write-off ₹270 Crore – Financial Impact
The fallout for Gameskraft has been significant. After a forensic audit, the company wrote off ₹270.43 crore in its financial statements for FY 2024–25. Despite reporting a 12% increase in revenue to ₹3,896 crore, the company’s net profit fell by 25% to ₹706 crore.
The broader impact includes:
- Investor Confidence: Stakeholders were blindsided by the scale of losses.
- Employee Morale: The scandal affected trust within the company.
- Reputation: Questions about governance standards have emerged in India’s startup ecosystem.
The scandal has also sparked broader conversations about corporate accountability in startups, especially in fast-growing sectors where rapid expansion sometimes takes precedence over robust financial controls.
Gameskraft CFO News – Media and Public Reaction
The Gameskraft CFO news has been widely covered across media outlets and social platforms. Investors, employees, and financial professionals are shocked at how such a large-scale fraud went unnoticed for years.
On September 9, 2025, Gameskraft filed a First Information Report (FIR) at Marathahalli Police Station, Bengaluru, against its ex-CFO. The charges include:
- Criminal breach of trust
- Theft
- Forgery
- Falsification of accounts
Given the high-value nature of the fraud, authorities are considering transferring the case to the Criminal Investigation Department (CID). Currently, Ramesh Prabhu remains untraceable, and investigations are ongoing.
Public and media discussions are focusing on:
- Internal Audit Failures: Why didn’t the company detect the misappropriation earlier?
- Corporate Governance Lapses: Were financial oversight mechanisms too weak?
- Startup Vulnerability: How can other startups prevent similar incidents?
This scandal highlights the need for transparency, vigilance, and accountability in startups, especially those handling large sums of money and multiple revenue streams.
Lessons for Startups and Investors
The Gameskraft CFO fraud serves as a stark reminder of the importance of robust financial oversight. Key takeaways include:
- Implement Strong Internal Controls: Establish regular audits and approval processes for significant transactions to prevent unauthorized activities.
- Monitor Financial Activities Closely: Even trusted executives can make risky decisions. Track unusual transactions, account transfers, or high-risk investments like F&O trading.
- Encourage Transparency: Maintain open communication with investors and stakeholders about financial decisions to build credibility and reduce the risk of hidden mismanagement.
- Watch for Red Flags: Absences, sudden changes in financial reporting, or unexplained profits/losses should trigger immediate attention.
- Foster an Ethical Culture: Beyond systems and audits, cultivate a workplace where ethical behavior and accountability are non-negotiable.
- Continuous Due Diligence: Investors should regularly assess not just revenue growth, but governance practices, financial reporting accuracy, and risk management processes.
By following these lessons, startups can minimize the chances of fraud, and investors can safeguard their capital more effectively.
How to File a Complaint?
If you’ve been affected by such scams, take quick action and report them through the right channels.
1. File a Cyber Crime Complaint:
Go to the National Cyber Crime Reporting Portal and submit your complaint with complete details — transaction records, screenshots, and chats. You’ll receive an acknowledgment number for tracking your case.
2. Contact the Enforcement Directorate (ED):
If large sums or cross-border transfers are involved, inform the ED and share all supporting evidence to aid the investigation.
3. Preserve All Evidence:
Keep copies of bank statements and payment proofs. Properly organized evidence helps authorities trace and recover your funds.
Need Help?
If you’ve lost money in scams like the Gameskraft CFO fraud, don’t stay silent. Register with us to report your case and explore recovery options.
Conclusion
The Gameskraft CFO fraud highlights the critical need for stringent financial controls and ethical governance in startups.
Ramesh Prabhu’s alleged misuse of company funds for personal high-risk trading resulted in significant financial losses and reputational damage.
This incident underscores the necessity for continuous monitoring, transparency, and a culture of accountability to prevent similar occurrences in the future.
