Paytm Money, the wealth management arm of One97 Communications, has appointed Rakesh Singh as its new CEO, succeeding Varun Sridhar. Sridhar, who has been at the helm since 2020, will take on a different role within the company. Singh brings with him experience from his previous role as CEO of Fisdom, a discount brokerage firm.
Under Varun Sridhar's leadership, Paytm Money achieved a significant milestone by turning profitable in the financial year 2023. The company reported a net profit of Rs 42.8 crore on revenue of Rs 132.8 crore during this period. However, despite its profitability, Paytm Money faces tough competition in the discount broking industry, with established players like Zerodha, Groww, and Upstox dominating the market. Data from the National Stock Exchange indicates that Paytm Money has around 760,000 active trading clients.
The appointment of Rakesh Singh comes amidst a series of executive changes within Paytm Money. Earlier this year, Vipul Mewada joined the company as a senior executive, bringing his expertise from ICICI Securities, where he served as a deputy CFO.
Despite the developments within Paytm Money, shares of its parent company, One97 Communications, have faced challenges in the market. On an annual basis, the company's shares have declined by nearly 45% on the National Stock Exchange. One of the significant setbacks occurred when the Reserve Bank of India issued a notice to Paytm Payments Bank Ltd. (PPBL) regarding its operations, leading to a sharp drop in the company's stock value.
