Paytm Stocks Dip 5% Following COO Resignation

The resignation of Bhavesh Gupta, along with the subsequent leadership appointments and expansion of the leadership team, marks a significant development for Paytm amidst its challenges, including regulatory restrictions and declining stock performance.

Bhavesh Gupta's Resignation and Transition:

Paytm's President and Chief Operating Officer, Bhavesh Gupta, resigned citing personal reasons. The Board of Company accepted Gupta's resignation at its meeting on May 4, 2024.

Gupta will be relieved from his duties by the close of business hours on May 31, 2024. However, Gupta will continue to support Paytm as an Advisor in the CEO office post his resignation.

Leadership Appointments:

The corporation Paytm Money has named Rakesh Singh as its new CEO. Varun Sridhar has been appointed as the CEO of Paytm Services Private Limited.

Expansion of Leadership Team:

One97 Communications Limited (OCL), the parent company of Paytm, is expanding its leadership team. The goal of the expansion is to develop a sizable and lucrative distribution company for financial services and payments.

This move is aligned with the ambition to ensure sustained growth across key business verticals, foster innovation, and strengthen the group structure for sustainability and regulatory compliance.

Role of Varun Sridhar:

The CEO of Paytm Services Pvt Ltd (PSPL) is Varun Sridhar, a former executive of Paytm Money Ltd. PSPL is a subsidiary dedicated to distributing mutual funds and other wealth management products.

Impact of RBI Restrictions:

Earlier this year, the Reserve Bank of India (RBI) barred Paytm's associate company, Paytm Payments Bank (PPBL), from accepting fresh deposits and doing credit transactions after March 15.

These restrictions are likely to impact Paytm's Q4 results.

Stock Performance:

Paytm's share price has plunged more than 21% in the past three months. Year-to-date (YTD), Paytm stock price has declined over 44%. Over one year, Paytm's stock price is down by over 48%.

Current Stock Status:

At 11:00 am, Paytm shares were trading 4.42% lower at ₹353.85 apiece on the BSE.

Meet Varun Sridhar: The New CEO Leading Paytm Services Pvt Ltd

Varun Sridhar is a prominent figure in the financial services industry, known for his expertise in wealth management and fintech.

• Former head of Paytm Money Ltd, Varun Sridhar has now been appointed as the CEO of Paytm Services Pvt Ltd (PSPL).
• PSPL, a subsidiary of Paytm, is dedicated to distributing mutual funds and other wealth management products.
• Sridhar's leadership role signifies Paytm's strategic focus on expanding its financial services offerings and strengthening its presence in the wealth management sector.