In a move reminiscent of a rallying cry from a superhero film, Vijay Shekhar Sharma, founder and CEO of Paytm, is reaching out to former executives to revive the company amid regulatory challenges and internal discord.
According to sources, Sharma has contacted his former trusted lieutenants, including Renu Satti, Kiran Vasireddy, and Nehul Malhotra, urging them to return and help steer Paytm back on track.
While Malhotra, currently working on his startup GenWise, denied any such move, Satti and Vasireddy were unavailable for comment. Paytm, in response, stated that these speculations are unfounded and emphasized their focus on promoting high-performing internal talent into leadership roles. The company’s core payment and credit businesses are currently led by seasoned COOs and CBOs, who work closely with the CEO and senior management to ensure strong leadership succession.
The restructuring efforts come after significant setbacks, including the Reserve Bank of India’s restrictions on Paytm Payments Bank Limited (PPBL), which has severely impacted the company’s mobile payment products and services. This regulatory blow has led to a loss of UPI market share, diminished high-margin wallet business, and eroded confidence among lending platform partners. Consequently, Paytm’s stock has plummeted, with several brokerages downgrading it over the past few months.
Sharma has taken direct control of various business verticals to revive growth, reduce customer attrition, and restore confidence among partners, merchants, and customers. As part of his strategy, he is attempting to bring back senior executives who played pivotal roles during the company’s initial growth phase.
The recent departure of Bhavesh Gupta, Paytm’s President and COO, marked a turning point for the company. Sources indicate that there were differences between Sharma and Gupta regarding business practices, particularly concerning lending partnerships. The departure has led Sharma to take on more hands-on management responsibilities, abandoning his usual management style.
Former executives like Satti and Vasireddy, who have extensive experience and history with Paytm, could be key to Sharma’s plan. Satti joined Paytm in 2006 and climbed the ranks to become CEO of Paytm Payments Bank. Vasireddy, who joined in 2009, rose to COO of the Payments business by 2017. Both left for new ventures but their return could signify a strategic move by Sharma to rebuild the core team post-PPBL debacle and senior leadership attrition.
Paytm is also seeking a banking industry veteran to lead its critical and high-growth lending vertical. Sharma has reportedly met with IndusInd Bank’s Sai Giridhar to discuss potential collaboration, though the outcome remains uncertain.
The company has undergone significant restructuring in recent months, with major leaders exiting following the RBI’s directive on its banking unit. Currently, second-in-command leaders are heading major divisions, reporting directly to Sharma. These include Ripunjai Gaur (CBO, Offline Payments), Tejinder Singh (CBO, Enterprise Merchants, SMB Merchants, EMI), Narendra Yadav (CBO, Wallet & UPI), and Avijit Jain (SVP & COO, Lending).
Despite Paytm’s denials of hiring former executives, the firm claims to be focusing on internal promotions to strengthen its leadership. In the fourth quarter of FY24, Paytm’s revenue from operations declined slightly by 2.9% YoY to Rs 2,267 crore, while net loss ballooned to Rs 550 crore. However, the company managed to close FY24 with a 25% growth in revenue at Rs 9,978 crore, and losses narrowed by 19% to Rs 1,442 crore compared to FY23.
Looking ahead, Paytm aims to recover its payments and lending businesses. It plans to adopt a distribution-only credit disbursement model, enter secured lending, reduce employee costs, and expand into insurance and wealth management in FY25. The success of these initiatives will determine Paytm’s ability to regain its footing in the competitive fintech landscape.
