Paytm shares witnessed a significant 5% decline to a day’s low of Rs 351.40 on Monday, following the announcement of the resignation of Bhavesh Gupta, who served as the Chief Operating Officer (COO) and President of Paytm. The Board of Directors accepted Gupta’s resignation during its meeting held on May 4, 2024, and his last day with the company will be May 31, 2024.
Resignation Announcement of Paytm COO
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. He stated, “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.”
Responding to Gupta’s resignation, Paytm issued a statement reaffirming its commitment to operational excellence and regulatory compliance. The company emphasized the strength of its leadership team and its dedication to navigating through the evolving financial landscape. “Paytm remains focused on strengthening its leadership team, succession planning, and navigating through the evolving financial landscape. The company continues to uphold its commitment to regulatory compliance and growth initiatives, positioning itself for future success in the competitive market,” said a spokesperson for Paytm.
Gupta’s resignation comes amidst a series of management changes within Paytm. Earlier, Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank Limited (PPBL), tendered his resignation citing personal reasons and to pursue better career prospects. Additionally, Paytm Money, the wealth management platform of One 97 Communications Ltd, appointed Rakesh Singh as its new CEO, replacing Varun Sridhar. Sridhar, in turn, transitioned to the role of CEO at Paytm Services Private Limited.
The announcement of Gupta’s resignation precedes Paytm’s scheduled announcement of the March quarter results for fiscal year 2024. Anticipation surrounds the impact of regulatory restrictions imposed by the Reserve Bank of India (RBI) on its associate firm, Paytm Payments Bank Ltd (PPBL). Bank of America (BofA) recently resumed its analysis of One 97 Communications, giving it an ‘Underperform’ rating and setting a target price of Rs 400, citing intense competition in the payments business and predicting a disappointing fourth-quarter earnings report attributed to actions by the RBI.
Despite the management reshuffle and regulatory challenges, Paytm remains focused on strengthening its leadership team, succession planning, and navigating through the evolving financial landscape. The company continues to uphold its commitment to regulatory compliance and growth initiatives, positioning itself for future success in the competitive market.
As the fintech giant navigates through this transition period, market observers eagerly await further updates on Paytm’s strategic initiatives and financial performance, amid a dynamic business environment characterized by regulatory scrutiny and competitive pressures.
