Paytm Money Appoints Rakesh Singh as New CEO Amid Executive Shuffle
Rising to the Challenge, Paytm Money's Leadership Transition and Growth Strategy
3 May 2024
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Kunal Tyagi
Rakesh Singh appointed as new CEO of Paytm Money following Varun Sridhar's resignation.
Paytm Money achieved profitability in FY23 under Sridhar's leadership, despite challenges faced by One97 Communications.
Paytm Money aims to maintain its competitive edge in digital wealth management amid industry reshuffle and heightened competition.
In a recent development, Paytm Money, the wealth management arm of One97 Communications, is set to welcome Rakesh Singh as its new CEO following the resignation of Varun Sridhar. Sridhar, who has been at the helm since 2020, is transitioning to a different role within the organization, according to sources close to the matter.
Singh, an industry veteran with over 18 years of experience in banking, notably held a similar position at Fisdom, a discount brokerage firm, prior to joining Paytm Money. His appointment is pending approval from the board, with a decision expected in the coming week.
Under Sridhar's leadership, Paytm Money witnessed significant growth, achieving profitability in the fiscal year 2023 with a reported net profit of ₹42 crore and nearly doubled revenue of ₹131 crore. Notably, Vipul Mewada, formerly with ICICI Securities, joined as a senior executive earlier this year, further strengthening the team.
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However, Paytm Money's parent company, One97 Communications, faced challenges following RBI restrictions imposed on Paytm Payments Bank, impacting its wallet and UPI operations. Despite these setbacks, Paytm Money aims to maintain its competitive edge in the digital wealth management space.
The appointment of Rakesh Singh comes amidst a broader reshuffle within One97 Communications and its subsidiaries. The company has witnessed several top-level changes and exits, including the resignation of Paytm Payments Bank MD and CEO Surinder Chawla, founder Vijay Shekhar Sharma stepping down from the bank's board, and the departure of other key executives.
Paytm Money's focus on stock and mutual fund investments positions it as a major player in the direct mutual funds segment, catering to a diverse clientele. However, the company faces stiff competition from rivals such as Groww, Zerodha, and Angel One, which boast larger user bases.
Looking ahead, Paytm Money aims to leverage its expertise and market presence to expand its financial services offerings. With the digital wealth management sector witnessing heightened activity and new entrants like Reliance’s Jio Financial Services entering the fray, Paytm Money is poised for further evolution and growth.
While challenges persist in the regulatory and competitive landscape, Paytm Money remains committed to delivering value to its customers and stakeholders. The appointment of Rakesh Singh signals a new chapter for the company, as it navigates through industry dynamics and charts a course towards sustained success in the evolving financial services ecosystem.
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