Paytm Services CEO Varun Sridhar Steps Down
Varun Sridhar, the CEO of Paytm Services, a subsidiary of One 97 Communications, has stepped down after five years in the role.
His departure signifies the conclusion of a significant chapter in which he was instrumental in developing Paytm’s financial services sector and turning Paytm Money into a profitable enterprise.
Sridhar joined Paytm prior to its IPO, assisting in the creation of the company’s operating model ahead of its public offering. At the helm of Paytm Money, he initiated several key projects, such as daily mutual fund SIPs, the growth of digital gold products, and the planning of secured lending solutions.
Before his tenure at Paytm, Sridhar worked for nearly eight years at BNP Paribas, where he oversaw the acquisition and integration of Sharekhan into the international banking group. His professional background encompasses over twenty years in banking, wealth management, and fintech.
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Currently residing in Goa, Sridhar mentioned in a LinkedIn update that he intends to spend some time reflecting on his future options after working tirelessly for more than two decades. He is considering various avenues, such as starting a wealthtech business, exploring AI-driven education opportunities, or even taking a break before re-entering the startup scene.
In the meantime, Paytm Money, now managed by Sandiip Bharadwaj, announced revenues of Rs 195.7 crore and profits of Rs 71.6 crore in FY24, although it still lags behind competitors like Groww, Zerodha, and Dhan regarding user growth.
Previously, One 97 Communications Limited, the parent company of Paytm, sanctioned a set of strategic initiatives during its board meeting on August 25. The board approved investments of up to Rs 300 crore in Paytm Money and Rs 155 crore in Paytm Services through rights issues.
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Both subsidiaries are wholly owned, and the funding will not affect the existing ownership structure, as disclosed by the company in a stock exchange notice.
The company also greenlit the complete acquisition of Foster Payment Networks for up to Rs 61 crore, making it a fully owned entity. Additionally, the Noida-based firm suggested transferring equity in First Games Technology from Paytm Cloud Technologies to Paytm Services for a maximum of Rs 140 crore.
Meanwhile, Paytm’s gaming subsidiary, First Games, has halted its real money gaming operations following the government’s announcement of the Promotion and Regulation of Online Gaming Act 2025. The company stated that First Games does not contribute to consolidated revenues and has no book value.
The new Online Gaming Act prohibits all real money gaming within India. Several platforms, including Dream11, MPL, Zupee, Gameskraft, My11Circle, Probo, WinZo, and others, have already ceased their RMG sectors.