Neeraj Arora Resigns As Paytm’s Independent Director, Rajeev Agarwal Named Replacement

The churn at Paytm continues as Neeraj Arora has now resigned as the non-executive independent director of the fintech major. 

In a filing with the BSE, the company said that Paytm’s board approved Arora’s resignation during a meeting on Monday (June 17). In his resignation letter, Arora cited his preoccupation and other personal commitments as the reason behind his resignation. 

Paytm founder and CEO Vijay Shekhar Sharma said, “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”.

Meanwhile, Paytm has appointed former Securities and Exchange Board of India’s (SEBI) whole time member Rajeev Krishnamuralilal Agarwal as the replacement for Arora. 

“The Board at its meeting held today, i.e., June 17, 2024… has approved the appointment of Shri Rajeev Krishnamuralilal Agarwal as a non-executive independent director of the company with immediate effect for a term of five (5) consecutive years, subject to the approval of the members of the company,” the filing said. 

The fintech major said that the latest appointment will enable it to enhance its “corporate governance with additional regulatory and compliance insights”.

Commenting on this, Sharma added, “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”.

An alumni of IIT Roorkee, Agarwal is a 1983 batch Indian Revenue Service (IRS) officer. He currently serves as the board member of companies such as ACC, Star Health Insurance, and UGRO Capital. 

The development comes at a time when the fintech major has been grappling with regulatory headwinds. In January, the Reserve Bank of India (RBI) barred Paytm Payments Bank from onboarding any new customers and undertaking any fresh customer deposits. 

The central bank also directed Paytm Payments Bank to not provide any other banking services, such as UPI facility and fund transfers.

Hit by the curbs, Paytm reported its first quarter of revenue decline since its listing in the fourth quarter (Q4) of the financial year 2023-24 (FY24). While revenue from operations declined 2.9% year-on-year (YoY) to INR 2,267.10 Cr in the quarter ended March 2024, net loss ballooned 3X YoY to INR 550.5 Cr in Q4 FY24. 

On account of these developments, the company has seen multiple top-level exits. Last month, Paytm’s president and chief operating officer (COO) Bhavesh Gupta stepped down, while CEO and managing director (MD) Paytm Payments Bank Limited (PPBL) Surinder Chawla announced his departure in April.

As a result, the company’s shares have been on a downward spiral. Paytm’s shares are trading 33% lower year to date and closed Friday’s (June 14) session at INR 424.90 on the BSE.