Paytm appoints ex-SEBI official Rajeev Agarwal to board as Neeraj Arora resigns

Vijay Shekhar Sharma-led Paytm has appointed Rajeev Krishnamuralilal Agarwal as a non-executive independent director. Meanwhile, the company also announced Neeraj Arora's resignation as a Non-Executive Independent Director.

Agarwal, a former full-time member of SEBI, will join the board for a term of five consecutive years. 

The decision was made at a board meeting held on June 17, 2024, following a recommendation from the Nomination and Remuneration Committee.

Who is Rajeev Krishnamuralilal Agarwal?

Rajeev Krishnamuralilal Agarwal brings over four decades of experience in the stock market, including 28 years with the Indian Revenue Services.

As a whole-time member of SEBI, he was instrumental in major market policy reforms, such as the revival package of the mutual fund industry in 2012 and the merger of the Forward Markets Commission with SEBI in 2015. 

He also spearheaded several IPO reforms to enhance transparency, initiated the offer-for-sale mechanism for PSU disinvestment and boosted SME exchange, which broadened capital-raising opportunities for small enterprises and startups.

Currently, he is Chairman and Independent Director on the board of Trust Mutual Fund and Independent Director on the boards of ACC Ltd., Star Health Insurance, UGRO Capital Ltd. and MK Ventures Capital Ltd. His vast experience will significantly enhance the compliance and regulatory framework at OCL, the company said.

Why did Neeraj Arora resign from Paytm?

Neeraj Arora, the former Chief Business Officer of WhatsApp and co-founder of the Hallo App, has resigned from the Paytm board due to personal commitments and preoccupations. 

This marks his second resignation from the board; he previously stepped down in 2018 before rejoining ahead of Paytm's IPO.

Arora cited personal reasons for his departure in a regulatory filing, which noted that his resignation would take effect from the closure of business hours on June 17, 2024.

"I am very happy to welcome Shri Rajeev Agarwal to the Paytm board. His expertise in regulatory and government-related matters will be an invaluable addition to our board. I would also like to express my gratitude to Shri Neeraj Arora for his significant contributions, which have been instrumental in our company's evolution. We remain committed to innovation and growth as we continue our efforts to serve our nation with financial inclusion," CEO Vijay Shekhar Sharma said.

Recent organizational changes

Paytm has recently experienced a series of top-level executive changes. In addition to Arora's resignation, Bhavesh Gupta, the Chief Operating Officer and President, resigned last month for personal reasons. 

In April, Surinder Chawla, CEO and Managing Director of Paytm Payments Bank, also stepped down.

The same month saw the departure of Chief Marketing Officer Sumit Mathur and Paytm Money's CEO Varun Sridhar. These changes indicate a significant reshuffling at the senior management level within the company.

Paytm's financial performance 

Despite these organizational changes, Paytm has shown positive financial performance. The company's revenue from operations grew by 25%, reaching Rs 9,978 crore in FY24, up from Rs 7,990 crore in FY23. 

Paytm also managed to reduce its net losses by 20%, bringing the figure down to Rs 1,422 crore for the last fiscal year.

Additionally, the company maintained EBITDA profitability before ESOP throughout the year, standing at Rs 559 crore. This financial resilience underscores Paytm's ongoing commitment to growth and profitability.