PAYTM COO RESIGNS, COMPANY ANNOUNCES LEADERSHIP RESHUFFLE

In a significant setback for Paytm, its President and Chief Operating Officer, Bhavesh Gupta, resigned from the company on May 4, citing personal reasons. Paytm's parent company, One97 Communications Limited, disclosed this development to the stock exchanges. Concurrently, Paytm Money, a subsidiary of OCL, announced Rakesh Singh as its new CEO, while the current CEO, Varun Sridhar, has been appointed as the Chief Executive Officer of Paytm Services Private Limited (PSPL), another subsidiary.

Gupta will continue his role until the end of this month before transitioning to an advisory position within the company. Notably, Gupta played a pivotal role in building Paytm's lending business, which achieved significant growth, reaching around Rs 15,000 crore in a quarter over the last couple of years.

Vijay Shekhar Sharma, Paytm's founder and CEO, expressed confidence in the company's future despite Gupta's departure. He stated, "Our focus on payments and lending is stronger than ever, and I will work with the seasoned leaders that we have in each of our businesses to execute our plans."

Paytm's revenue growth has been robust, primarily driven by its lending platform, which contributed around 20 percent to the company's revenue and 25 percent to its margin. However, the Reserve Bank of India's recent restrictions on PPBL led to a pause in lending activities for over a month, likely impacting Paytm's financial performance more than anticipated.

Additionally, Paytm witnessed a decline in its UPI market share to 9 percent in March, its lowest in four years. UPI transactions constitute a significant portion of Paytm's gross merchandise value (GMV). Moreover, the usage of the Paytm wallet license has been dwindling post-RBI's action, with expectations that it may eventually become obsolete as users exhaust their wallet balances.

To mitigate these challenges, Paytm has been diversifying its business by adding more products and services. The setback in lending has prompted the company to shift focus towards fast-growing equity investment products, leading to leadership changes at PPSL and Paytm Money.

Vijay Shekhar Sharma expressed enthusiasm about Paytm's direction under Varun's leadership and welcomed Rakesh to the Paytm Wealth business. He emphasized their commitment to building technology-led wealth offerings for young Indians, reflecting Paytm's dedication to innovation and growth in the financial services sector.

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2024-05-04T18:40:22Z dg43tfdfdgfd