Shares of One 97 Communications, which runs Paytm, fell 5 per cent to the day’s low of Rs 351.70 on Monday after the company informed the exchanges about the resignation of Bhavesh Gupta, COO and President of Paytm.
According to the filing, Gupta in a letter said that his resignation would be effective as of the close of business hours on May 31, 2024. He, however, expressed his intention to continue supporting the company in an advisory capacity within the chief executive’s office.
In his resignation letter, Gupta cited personal reasons for taking a career break and expressed confidence in Paytm’s future trajectory, acknowledging the robust leadership in payments and financial services developed over recent years.
“His resignation has been accepted by the Company and he will be relieved from the services of the Company w.e.f. close of business hours on May 31, 2024,” Paytm said in the filing.
Meanwhile, Paytm has also announced the appointment of Rakesh Singh as the new CEO of Paytm Money, while Varun Sridhar, the existing CEO, has been appointed as the Chief Executive Officer of Paytm Services Private Limited (PSPL).
Both Paytm Money and PSPL are subsidiaries of Paytm parent One97 Communications, and facilitate stock broking, investments in mutual funds, and other wealth management products for Paytm customers.
Bhavesh Gupta’s resignation comes just ahead of Paytm’s scheduled announcement of the March quarter results for fiscal year 2024. It is widely anticipated that the quarterly results may have been impacted following regulatory restrictions imposed by the Reserve Bank of India (RBI) on its associate firm, Paytm Payments Bank Ltd (PPBL).
Paytm has been in the news for various reasons in the past few months. The company landed into regulatory trouble and its core management did not sound confident of its future.
Earlier in the last month, Surinder Chawla, Managing Director and CEO of Paytm Payments Bank Limited (PPBL) had tendered his resignation citing personal reasons and to pursue “better career prospects”. His last working day will be June 26.
Recently, Paytm Money, the wealth management platform of One 97 Communications Ltd, had appointed Rakesh Singh as its chief executive, replacing Varun Sridhar, its CEO since 2020. Sridhar was moved to the role of CEO with Paytm Services Private Limited.
“Paytm’s payment and credit businesses are led by Chief Operating Officers and Chief Business Officers, each with over five years of experience at Paytm and 20-26 years of total work experience in relevant industries. This seasoned leadership team will now work directly with Paytm’s CEO and other senior management. The Company has been focusing on strengthening the roles of its next line of leaders and robust succession planning,” the company said.
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