Arthmate COO Resigns After CEO’s Arrest, Employees Flee, And More Chaos

Manvendra HadaSeptember 7, 2024

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Three points you will get to know in this article:

Arthmate is in full chaos following the arrest of its cofounder and former chief executive officer, Vihaan Kumar.
Renu Satti, Arthmate’s chief business officer, has stepped down from her post, and numerous other staff have left
Kumar was detained when Gameskraft cofounder & CFO Ramesh Prabhu filed a FIR against him and accused him of fraud.

Panic Strikes Arthmate Post CEO Arrest, Employees Flee, COO Quits

Arthmate, a Gurugram-based financial startup, is in full disarray following the arrest of its cofounder and former CEO Vihaan Kumar, with staff apparently fleeing in droves, including a top executive.

Renu Satti, Arthmate’s chief operational officer, has resigned, and numerous other employees have left the company since Kumar’s arrest, Entrackr reported, citing sources.

However, Satti’s LinkedIn profile still lists her as Arthmate’s COO. Prior to joining Arthmate in February, Satti was the CEO of Paytm Payments Bank.

When Did Troubles Start for Arthmate?

According to the media, the trouble began in September 2022, when Ramesh Prabhu, cofounder and chief financial officer of online gaming startup Gameskraft, filed a complaint with the Gurugram Police against Kumar, accusing him of fraud.

Gameskraft declined to respond to media inquiries, stating that “the matter is sub-judice”.

Five months later, a First Information Report (FIR) was allegedly filed in connection with the crime, and Kumar was detained in June.

What Did FIR Against Arthmate’s CEO Mentioned?

The FIR against Kumar said that he made an agreement with Gameskraft to invest in the firm but thereafter manoeuvred its board in an attempt to obtain control of its activities.

Kumar allegedly hired service providers and contractors like Fly Tech, Ginni Tech, Skytech, and Synx for Gameskraft without the promoters’ permission. These companies appear to have thrown Gameskraft into financial difficulties by declaring losses due to undeliverable or over-invoiced services.

According to the FIR facts reported by the media, Gameskraft incurred losses totaling INR 12.15 crore as a result of Kumar’s conduct, including unpaid GST dues that had already been funneled to bogus providers.

In response to these claims, the Gurugram Police and Economic Offence Wing (EoW) filed a FIR against Kumar on charges of criminal breach of trust, cheating, forgery, using fake papers, and criminal conspiracy.

Kumar challenged his detention at the Chandigarh High Court, but the court refused to provide him any remedy and dismissed his claims last month. Kumar is currently imprisoned until the judge gives him bail.