Neeraj Arora, an independent director at Paytm, has stepped down from the company’s board of directors, citing personal commitments. Arora, who was also a member of the Nomination and Remuneration Committee and the Investment Committee, announced his resignation on Monday. His departure marks another significant change in the company’s leadership during a challenging period.
In an exchange filing, Paytm revealed that former IRS officer and SEBI Whole Time Member, Rajeev Krishnamuralilal Agarwal, will replace Arora as a non-executive independent director. Agarwal, an IIT Roorkee graduate with extensive experience in securities, commodities markets, and taxation, has served as a whole time member at SEBI and as a member of the Forward Markets Commission. He has also engaged with international regulatory bodies like IOSCO, bringing a wealth of global market regulatory experience to Paytm.
“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,” said Vijay Shekhar Sharma, Founder & CEO of Paytm. “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,” he added.
Arora, who served as the chief business officer at WhatsApp, joined Paytm’s parent company, One97 Communications, as an additional director just before its IPO in 2021. His exit occurs amidst a series of staff reductions and allegations of unfair layoff practices within the company. Reports indicate that several employees were asked to either resign or face termination, adding to the company’s recent turmoil.
In addition to Arora’s resignation, Paytm has seen the departure of several top-level executives. Bhavesh Gupta, the former president and chief operating officer overseeing the payments and lending businesses, resigned in May, citing personal reasons. However, according to a report by Moneycontrol, Gupta’s exit followed a series of “missteps” and a slowdown in lending after regulatory actions against Paytm Payments Bank Ltd.
Shortly after Gupta’s resignation, Ajay Vikram Singh, Chief Business Officer for UPI and user growth, and Bipin Kaul, CBO for Offline Payments, also stepped down during a company restructuring. In response to these departures, Paytm stated that CEO Sharma would take a more hands-on approach in various operations.
In its Q4 earnings release, Paytm announced a strategic pivot towards a distribution-only credit model, where the company would not be responsible for collections and would not receive collection incentives. This shift, the company clarified, is a temporary measure in response to macroeconomic conditions affecting repayments.