Paytm Payments Bank CEO Renu Satti has resigned from the role and will now head Paytm’s ‘New Retail’ business, a statement from the company said. Satti joined Paytm’s parent company One97 in 2006 and was appointed managing director and CEO of the Payments Bank in May 2017. Meanwhile, it remains unclear who will be the new CEO of the payments bank.
Satti, an old hand at Paytm, has been instrumental in building all major verticals of the company, including, marketplace, movie-ticketing and payments bank businesses “from the ground-up,” the statement said. Consequently, that’s what makes her the ideal choice to lead the new business, the release added.
In its ‘New Retail’ model, consumers will be able to discover nearby pharmacies, groceries and other shops to place an order and get instant deliveries. According to Paytm, it has already partnered with a large network of local shops, restaurants, pharmacies and grocery stores for accepting payments and will soon extend New Retail services to them. The release stated that the company will equip shopkeepers with technology, logistics and marketing capabilities.
The company also added that it is building a peer-to-peer logistics platform with a pan-India rider network for intra-city deliveries. The company has eight million offline merchants on its platform. “There is a gap and opportunity in the daily needs and the hyper-local space. These categories drive for us a million orders a day and we wanted to further expand,” said Vijay Shekhar Sharma, founder and chief executive, Paytm. According to Shekhar, local ordering is expected to gain a third of Paytm’s orders and gross merchandise value by 2020. Some reports claimed that the company is planning to raise $500 million for the new vertical, which will be launched by the end of August.
Paytm’s recent moves
Last week, the company, in collaboration with SoftBank announced the launch of a new digital payments service in Japan. This will be Paytm’s second international market after Canada, where the company has a bill payments application. Prior to that, Paytm launched a Forex service, for money exchange of 20 top international currencies on its platform. The development came shortly after the company announced that it has achieved an annual run rate of 5 billion transactions and $50 billion in Gross Transaction Value (GTV). Last month, Paytm Mall, the e-commerce arm of Paytm raised $200 million from SoftBank in a new round of funding. In June, Paytm’s parent firm One97 Communications Ltd acquired Delhi-based technology startup Cube26 for an undisclosed amount.