Shares of Paytm parent One97 Communications fell 5% on Monday after the digital payments firm said its president and chief operating officer Bhavesh Gupta has decided to resign due to personal reasons.
Gupta, who was overseeing the payments and lending businesses, has decided to take a career break due to personal reasons, Paytm says in a regulatory filing.
“He will be transitioning to an advisory role, offering guidance for Paytm’s growth initiatives until the end of the year. The leadership will focus on profitable business expansion and is committed to regulatory compliance,” the filing says.
“I have decided to take a career break due to personal reasons. I look forward to supporting Paytm in an advisory role. I am confident of Paytm reaching new heights given the depth of leadership in payments and financial services that has been built over the past few years,” says Gupta.
Reacting to the development, shares of Paytm tumbled 5% to hit a low of ₹351.70 on the BSE, taking the company’s market cap to ₹22,395 crore.
This comes four weeks after Paytm Payments Bank CEO Surinder Chawla tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. Chawla will be relieved from Paytm Payments Bank with effect from close of business hours on June 26, 2024.
Paytm says it is expanding its leadership team to build a large and profitable payment and financial services distribution business. This move is aligned with its ambition to ensure Paytm’s sustained growth across key business verticals, fostering innovation and strengthening its group structure for sustainability and regulatory compliance.
The National Payments Corporation of India (NPCI) in March granted approval to One97 Communications Ltd (OCL) to participate in UPI as a third-party application provider (TPAP). Paytm is now working with Yes Bank, Axis Bank, State of India and HDFC Bank under a multi-bank TPAP model. For loan and credit card distribution, the company continues to work with NBFC and bank partners.
“As this transition unfolds, Paytm remains committed to fostering growth, profitability, and maintaining robust governance and compliance,” it says.
The company has also undertaken leadership transitions within its wealth subsidiary where Rakesh Singh has recently been appointed as the new chief executive officer of Paytm Money. Singh was previously the CEO of the stock broking business at Fisdom, and has held key management positions with ICICI Securities and Standard Chartered Bank.
“I would like to thank Bhavesh for his contributions and his role in ensuring a smooth transition. 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. I am also excited about the direction that we have taken under the leadership of Varun to expand Paytm’s role in deepening penetration of mutual fund and wealth management products in our country. I welcome Rakesh to Paytm Wealth business where we are committed to build world class technology led wealth offerings to young Indians,” says Vijay Shekhar Sharma, founder and CEO, Paytm.
