Bhavesh Gupta Promoted as President and COO at Paytm
Paytm has promoted Bhavesh Gupta, a crucial member of its lending division, to the positions of President and Chief Operating Officer (COO). This is in response to the growing competition in the digital lending sector. This move aims to enhance and fortify Paytm’s lending operations.
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Paytm has announced that Bhavesh Gupta, previously the Senior Vice President at the company, will now lead various divisions including lending, insurance, online and offline payments, consumer payments, and key initiatives related to user growth, operations risk, fraud risk, and compliance. Gupta, who joined Paytm in 2020, will continue reporting to Vijay Shekhar Sharma, the managing director and chief executive of Paytm. Before joining Paytm, Gupta held the position of CEO at Clix Capital (formerly GE Capital) and has extensive experience in the industry spanning over 25 years. He has also served in leadership roles at IDFC Bank and ICICI Bank. Gupta holds a graduate degree from Delhi University and an MBA from the Institute of Management Studies, Indore.
Gupta’s advancement to take on increased duties, specifically in the lending operations, corresponds with Paytm’s ambitious expansion strategies for its digital lending business, which is gaining momentum as more companies enter the market.
The founder and CEO of PhonePe, Paytm’s major competitor backed by Walmart, revealed that they have initiated digital lending trials and may soon seek an NBFC license, indicating the growing competition in this sector.
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Many fintech companies, such as Cred, Jar, and KreditBee, are intensifying their focus on digital lending in India, which remains largely underserved in terms of credit. Despite the funding challenges, these companies have managed to secure significant investments from investors. Lending-focused companies have been the primary recipients of funding this year.
Paytm is one of India’s largest fintech companies, heavily depends on its lending operations. Paytm’s credit distribution business, in collaboration with multiple lenders, experienced substantial growth in the fourth quarter. The number of loans reached 1.2 crore, marking an 82 percent year-on-year increase, while the total value of loans amounted to Rs 12,554 crore, showing a remarkable 253 percent year-on-year growth.
By March 2023, approximately 95 lakh borrowers had obtained loans through Paytm’s platform. In the fiscal year 2022-2023, the total number of disbursed loans rose by 163 percent year-on-year, reaching 4 crore loans valued at Rs 35,378 crore. This represents an outstanding surge of 357 percent year-on-year growth.
