Paytm, the leading Indian fintech giant, is undergoing significant changes in its senior management as its Chief Operating Officer, Bhavesh Gupta, steps down amid regulatory challenges. The parent company, One97 Communications, announced Gupta’s resignation on Saturday, attributing it to personal reasons.
Gupta, who had been overseeing Paytm’s lending business, online and offline payments, and compliances, decided to take a career break after the Reserve Bank of India (RBI) imposed a ban on Paytm Payments Bank (PPBL) from conducting new transactions. This move adversely affected the verticals under Gupta’s purview.
According to an official statement, Gupta will transition to an advisory role, providing guidance for Paytm’s growth initiatives until the end of the year. His departure marks the end of a tenure that began in August 2020 when he joined Paytm from Clix Capital, formerly known as GE Capital. Gupta’s last day of service with the company will be on May 31.
The RBI’s restrictions on PPBL led to an estimated loss of Rs 300-500 crore for Paytm. Consequently, the company had to halt its lending operations temporarily, although they have reportedly resumed by now.
In response to these challenges, Paytm has implemented a change in its leadership structure. Rakesh Singh, with over two decades of experience, has been appointed as the new CEO of Paytm Money Ltd. Singh previously served as the CEO of the stock broking business at Fisdom and held key management positions at ICICI Securities and Standard Chartered Bank.
Meanwhile, Varun Sridhar, who was leading Paytm Money, has been appointed as the CEO of Paytm Services, responsible for the distribution of mutual funds and other wealth management products.
Vijay Shekhar Sharma, CEO of Paytm, expressed gratitude to Bhavesh Gupta for his contributions and highlighted the company’s continued focus on payments and lending. He also acknowledged Varun Sridhar’s role in expanding Paytm’s presence in the mutual fund and wealth management sector, welcoming Rakesh Singh to lead the wealth business.
In the face of regulatory setbacks, Paytm remains committed to its growth trajectory and aims to leverage its experienced leadership team to execute strategic plans.
