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Gameskraft pauses operations of Pocket52

EntrackrEntrackr · 4m ago
Gameskraft pauses operations of Pocket52
Medial

Gameskraft has announced a strategic pause on its poker platform, Pocket52, as part of a broader plan to reassess and redefine its approach to the poker category in India. According to the company, it aims to deliver a more focused and differentiated experience to players, aligning with its long-term strategic vision for the poker segment. “The ‘Add Cash’ feature on Pocket52 will be discontinued on May 22, 2025, and gameplay will end on May 30, 2025. The platform will remain accessible until July 2025 for withdrawals, ensuring that all existing customer funds are secure and accessible through standard processes,” the company said in a release. Gameskraft has assured that the pause will not impact its employee strength and that all communications regarding withdrawals and further updates will be sent to players. While Gameskraft did not explicitly cite the 28% GST imposed by the government on gaming startups as a reason, it cannot be ruled out as a factor behind the strategic pause. Several startups have faced layoffs and shutdowns since the implementation of the tax. Despite the operational pause, Gameskraft continues to focus on creating innovative digital experiences for players across its gaming portfolio. According to TheKredible, Gameskraft’s revenue from operations grew to Rs 3,475 crore in FY24 from Rs 2,673 crore in FY23. During the period, its profit dropped 10.8% to Rs 947 crore. Besides Pocket52, Gameskraft also runs Rummy Culture, Playship, RummyPrime, Ludo Culture, and Rummy Time.

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Gameskraft CFO siphoned Rs 250 Cr for F&O trading

EntrackrEntrackr · 2d ago
Gameskraft CFO siphoned Rs 250 Cr for F&O trading
Medial

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.

Gameskraft lays off 120 employees

EntrackrEntrackr · 8h ago
Gameskraft lays off 120 employees
Medial

Gameskraft, one of India’s largest real-money gaming companies, has laid off about 120 employees across teams as part of a restructuring exercise triggered by the government’s blanket ban on online money games. The layoffs come at a turbulent time for the firm, which is also reeling from a fraud scandal involving former CFO Ramesh Prabhu, who allegedly siphoned off Rs 270 crore over nearly five years. An FIR has been filed against him following the company’s complaint at Bengaluru’s Marathahalli police station. Affected employees will receive severance pay, leave encashment, and extended group health insurance until March 2026, with an option to convert policies to individual plans. Founder Prithvi Singh said the decision was forced by “external realities” and not employee performance, adding that Gameskraft would support outgoing staff during their transition. Founded in 2017, Gameskraft had been one of the fastest-growing real-money gaming firms, operating platforms like Rummyculture and Pocket52, both of which have now been shut following the new law. According to TheKredible, the company’s FY25 net profit dropped 25% to Rs 706 crore because of the 28% GST, increased taxes, and one-time accounting changes. However, the company’s revenue rose 12% to Rs 3,896 crore from Rs 3,475 crore in FY24. Gameskraft joins other gaming firms downsizing after the ban. A23 Rummy (Head Digital Works) cut 500 jobs, Zupee axed 170, MPL is shrinking up to 60% of staff, and Baazi Games has reduced headcount by 200. Games24x7 is reportedly laying off 70% of its workforce.

Gameskraft crosses Rs 4,000 Cr revenue in FY25; PAT nears Rs 1,000 Cr

EntrackrEntrackr · 6d ago
Gameskraft crosses Rs 4,000 Cr revenue in FY25; PAT nears Rs 1,000 Cr
Medial

Gameskraft crosses Rs 4,000 Cr revenue in FY25; PAT nears Rs 1,000 Cr Gameskraft’s FY25 numbers reflect strong performance before the RMG ban. The firm reported double-digit revenue growth and maintained profitability during the fiscal year. The Indian government’s recent ban on real-money gaming formats has disrupted the sector overnight, but Gameskraft’s FY25 numbers reflect strong performance before the clampdown. The firm reported double-digit revenue growth and maintained profitability during the fiscal year. Gameskraft’s revenue from operations grew 12% to Rs 3,896 crore in FY25 from Rs 3,475 crore in FY24, according to its consolidated financial statements sourced from the Registrar of Companies (RoC). Gameskraft operated popular gaming apps such as Rummy Culture, Playship, Pocket 52, RummyPrime, Ludo Culture, and Rummy Time. Its revenue (gross gaming revenue) came from platform fee or commission charged as a percentage of the buy-in fees users invest in games, which contributed Rs 3,882 crore (99.6% of operating revenue), registering a 12.2% growth. Its real estate business added Rs 11 crore, while other income sources contributed Rs 3 crore in FY25. The Bengaluru-based company made an additional Rs 113 crore from non-operating sources which pushed its total revenue to Rs 4,009 crore in FY25. On the cost side, promotional spending emerged as the single largest expense and accounted for 75% of total burn. To the tune of scale, this cost surged 58% to Rs 2,072 crore in FY25 from Rs 1,315 crore in FY24. Employee benefits, on the other hand, saw a decline of 11% to Rs 410 crore, while legal and professional fees fell 22.8% to Rs 112 crore in FY25. Overall, the company’s total expenses shot up 24% to Rs 2,766 crore in FY25 as against Rs 2,232 crore in FY24. See TheKredible for the detailed cost breakdown during the last fiscal year. Despite the jump in ad spend, Gameskraft managed to sustain profitability on the back of its strong topline and controlled costs in other areas. Its net profit stood at Rs 976 crore in FY25, slightly higher than the Rs 947 crore posted in FY24. It's worth noting that we have excluded exceptional items worth Rs 270.5 crore in the calculation of net profit of the company. Gameskraft's ROCE and EBITDA margin stood at 58.40% and 31.63%, respectively. On a unit basis, Gameskraft spent Rs 0.71 to earn a rupee of operating revenue in FY25. The company recorded current assets worth Rs 2,232 crore in FY25 which includes Rs 253 crore in cash and bank balances and Rs 1,319 crore invested in mutual funds. While Gameskraft’s FY25 numbers were unaffected, the Indian government’s new gaming law effective August 2025 has forced the company to halt its real-money operations, including shutting down “Add Cash” features and discontinuing its flagship rummy platform RummyCulture, alongside pausing its poker venture Pocket52 earlier in the year. The move, mandated by the Promotion and Regulation of Online Gaming Act, has also led Gameskraft to publicly state it will not pursue a legal challenge, instead opting for full compliance. Given that real-money gaming contributed nearly all of Gameskraft’s FY25 revenue, the ban is expected to significantly impact its business model, revenue streams, and growth trajectory going forward.

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