Renu Satti CEO of Paytm payments Bank has resigned from her position and will now head the new retail initiative. She is re-designated as the chief operating officer for its upcoming initiative in its parent company. The company has yet not zeroed in on a new CEO. She was appointed CEO of the Payments Bank the previous year.
The company also said that Satti, who is a part of the core team, has been instrumental in launching the main verticals those include the e-commerce in creating a merchant base, and will now be the key in creating its brand new segment ‘New Retail’.
The company is also planning to raise the amount of $500 million for the unit, a model to be used to equip shopkeepers with technology, logistics and the marketing capabilities. Under this, consumers can also discover the nearby pharmacies, groceries and other shops to place an order and to get the instant deliveries.
Paytm is also building a peer to peer logistics with a rider network which is spread across the whole country, and will be utilized for the intra-city deliveries. The company is also partnered with the large network of restaurants, local shops, groceries and the pharmacies for accepting the payments and will soon extend the ‘New Retail’ services to them. With food ordering and groceries reaching the same scale, the company is partnering with national grocery and food chains as well as online platforms to power ‘New Retail’.
“Renu Satti will be leading the charge as COO of this new initiative. In the past, she has built businesses ground up that include marketplace, movie ticketing and most recently Paytm Payments Bank,” the company said. Vijay Shekhar Sharma said they will work with the grocery stores, local restaurants, and pharmacies to enable them for local ordering. “Renu will lead the New Retail initiative and she has resigned from bank CEO position. Local ordering is expected to become one third of Paytm orders and GMV by 2020,” Sharma said.
The respective sources said that, Paytm is currently in talks with the US-based investors and also its existing shareholder i.e. SoftBank for their latest funding, that is likely to value the digital payments firm at about $10 billion. The new financing will be directed towards the hyper local O2O business, which aims to shore up footfalls for offline stores by offering deals and discounts through Paytm’s app. Shoppers will pay through QR codes in these stores, thereby increasing transaction numbers for the digital payments player. For now, merchants won’t be charged a commission by Paytm. They will, however, have to pay a fee for logistics and marketing costs.
Paytm started out as a mobile recharge platform, expanded into digital payment solutions and e-commerce (Paytm Mall). In 2015 Paytm received approval from the Reserve Bank of India to set up a payments bank. The bank began operations in 2017 as India’s third payments bank. At the time of its launch it said it aimed to create the world’s largest digital bank with 500 million accounts. The latest account information is not available but in an April 2018 media statement the bank said it had 100 million KYC wallets.
Paytm Payments Bank is owned 51 percent by Vijay Shekhar and 49 percent by One97 Communications Ltd., a company founded by Sharma. One97 is backed by investors such as Jack Ma’s Alibaba Group and Ant Financial among others.