Paytm: Two more top executives depart amid restructuring efforts
BENGALURU : Bengaluru: Paytm’s chief business officers, Bipin Kaul and Ajay Vikram Singh, have resigned, following the recent departure of the company’s president and chief operating officer Bhavesh Gupta, according to a person in the know.
Kaul oversaw offline payments, while Singh led Unified Payments Interface (UPI) and user growth. Gupta had resigned citing personal reasons, transitioning to an advisory role.
As part of a restructuring effort, the company has seen several leadership changes in recent times, including the appointment of Rakesh Singh as the chief executive officer of Paytm Money, following Varun Sridhar’s departure.
“We are committed to sustained growth across key business verticals as part of a restructuring initiative, signalling a reinvigorated approach under Paytm’s CEO. These changes aim to strengthen our next line of leaders,” said a company spokesperson.
Singh’s departure follows a brief tenure of five months in his second stint at Paytm. He had served as the vice president of lending from 2021 to 2023. Singh had also held senior leadership roles at HSBC, Xiaomi and Citi Bank.
Kaul was an integral part of Paytm for nearly three years. Previously, he had stints in IndusInd Bank, IDFC FIRST Bank and ICICI Bank.
Moneycontrol was the first to report on the developments.
Paytm, operating under One97 Communications, saw its shares dip nearly 5% to ₹333.85 at the close of trading on Tuesday. The company is set to release its full-year and fourth-quarter results later this month.
Earlier this year, the Reserve Bank of India (RBI) directed Paytm Payments Bank Ltd to halt new credit and deposit operations, top-ups and fund transfers, among other banking activities. This action followed a comprehensive audit by external auditors, uncovering consistent non-compliance, besides supervisory concerns within the bank.
Despite these restrictions posing a risk of losing customers and merchants, the company has shown signs of a recovery.
In March, it had obtained approval from the National Payments Council of India (NPCI) to operate as a third-party app, allowing it to function as competitors such as Google Pay and PhonePe.
Additionally, it has partnered with Axis Bank, HDFC Bank, State Bank of India and Yes Bank to ensure smooth business migration, demonstrating proactive measures to address operational challenges.
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Published: 07 May 2024, 05:40 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.