CXO-level shifts rearrange top deck at Indian startups
ETtech
Synopsis
The world of startups witnessed a series of top-level movements in the first half of 2024, including Naveen Tahilyani taking the helm as CEO of Tata Digital and the resignation of Surinder Chawla, managing director and chief executive officer of Paytm Payments Bank.
The startup Inc witnessed a series of top-level movements in the first six months of 2024, including Naveen Tahilyani joining Tata Digital as CEO, the resignation of Paytm Payments Bank MD and CEO Surinder Chawla, and the appointment of Rakesh Singh as CEO of Paytm Money, among others.
In the first six months of 2024, Tata group's ecommerce unit, Tata Digital, appointed Tahilyani as its chief executive officer (CEO) and managing director (MD), replacing Pratik Pal. Previously, he was the CEO of Tata AIA Life Insurance.
The fintech industry, facing substantial regulatory challenges from the Reserve Bank of India (RBI), witnessed significant top-level changes. Chawla, who was the MD and CEO of Paytm Payments Bank, resigned, citing personal reasons and the pursuit of better career opportunities. Additionally, Bhavesh Gupta resigned as president and COO of Paytm to join consultancy firm Operating Mynds Consultancy.
Similarly, Singh, who was the CEO of broking services at PayU-backed wealth tech startup Fisdom, was appointed CEO of wealth management company Paytm Money, replacing Varun Sridhar.
Digital payments firm PhonePe appointed former Yes Bank chief digital officer Ritesh Pai as CEO of its international business. Before this, Pai was the president of products and solutions at cross-border payments firm Terrapay.
The Indian edtech sector also experienced significant executive movements this year. Arjun Mohan, CEO of Byju’s India, left the troubled edtech firm just over six months after taking on the role, prompting founder Byju Raveendran to take charge of the daily operations of the company's India business. Himanshu Bajaj, CEO of Byju's tuition centre business, joined consultancy firm Alvarez & Marsal as its co-country head and managing director.
He added that the market continues to be muted, and the lack of financial stability in startups has led to many executives moving to traditional multinational corporations.
Other notable C-suite moves include Anuj Rathi, former chief product and marketing officer at fintech firm Jupiter, joining Flipkart’s travel booking unit Cleartrip as chief business and growth officer. Srikanth Subramanian, former CEO of Kotak Cherry, joined Angel One as its CEO. Coffee chain Third Wave Roasters appointed Rajat Luthra as CEO, and fintech startup Infibeam Avenues hired former Meesho senior executive Rajesh Kumar SA as the new CEO of its artificial intelligence business, Phronetic AI.
Longhouse Consulting also noted that the ongoing funding winter in the ecosystem has prompted senior-level executives to look for new opportunities as they face stagnant growth and a lack of job security in their current organisations.
“Hiring (of senior-level executives) is definitely nowhere at the rate or magnitude that was happening a year and a half earlier,” said Harold D’Souza, cofounder and director at executive search firm WalkWater Talent Advisors.
D’Souza added that most of the current hiring is driven by strong reasons such as replacement, business growth, profit increase, or adding new business areas necessary for company growth. There's no experimental hiring; it is focused on business growth and profitability, which is beneficial for the overall industry.
Vaibhav Parchure, partner at startup hiring firm MetaMorph, noted that senior-level executives are increasingly moving to start their own ventures or to companies in the growth stage, as these companies recognise the need to hire senior, veteran leaders to achieve profitability and attract investments.
“Founders and companies are now looking for leaders even from a different industry to bring that sort of experience, the industry know-how, network and overall leadership experience. It is happening across the startup scene, and this is the reason why we are seeing a lot of movements,” Parchure said.
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ET analysed the top-level movements with data from executive search firm Longhouse Consulting.Elevate Your Tech Prowess with High-Value Skill Courses
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The fintech industry, facing substantial regulatory challenges from the Reserve Bank of India (RBI), witnessed significant top-level changes. Chawla, who was the MD and CEO of Paytm Payments Bank, resigned, citing personal reasons and the pursuit of better career opportunities. Additionally, Bhavesh Gupta resigned as president and COO of Paytm to join consultancy firm Operating Mynds Consultancy.
Similarly, Singh, who was the CEO of broking services at PayU-backed wealth tech startup Fisdom, was appointed CEO of wealth management company Paytm Money, replacing Varun Sridhar.
Digital payments firm PhonePe appointed former Yes Bank chief digital officer Ritesh Pai as CEO of its international business. Before this, Pai was the president of products and solutions at cross-border payments firm Terrapay.
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The Indian edtech sector also experienced significant executive movements this year. Arjun Mohan, CEO of Byju’s India, left the troubled edtech firm just over six months after taking on the role, prompting founder Byju Raveendran to take charge of the daily operations of the company's India business. Himanshu Bajaj, CEO of Byju's tuition centre business, joined consultancy firm Alvarez & Marsal as its co-country head and managing director.
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“I think one thing which is coming out this year is that it is still a continuation of last year and the tangible change between 2023 and 2024 in the first half is obviously limited. But directionally, 2024 looks to be a little better year as compared to 2023,” Anshuman Das, founder and CEO of Longhouse Consulting said.He added that the market continues to be muted, and the lack of financial stability in startups has led to many executives moving to traditional multinational corporations.
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Other notable C-suite moves include Anuj Rathi, former chief product and marketing officer at fintech firm Jupiter, joining Flipkart’s travel booking unit Cleartrip as chief business and growth officer. Srikanth Subramanian, former CEO of Kotak Cherry, joined Angel One as its CEO. Coffee chain Third Wave Roasters appointed Rajat Luthra as CEO, and fintech startup Infibeam Avenues hired former Meesho senior executive Rajesh Kumar SA as the new CEO of its artificial intelligence business, Phronetic AI.
Longhouse Consulting also noted that the ongoing funding winter in the ecosystem has prompted senior-level executives to look for new opportunities as they face stagnant growth and a lack of job security in their current organisations.
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However, the average job search time at the leadership level has increased to six to nine months in the last 18 to 24 months, compared to the pre-funding winter range of three to four months. The number of offers an individual receives when seeking a leadership role has decreased to one or two, compared to three to five previously.“Hiring (of senior-level executives) is definitely nowhere at the rate or magnitude that was happening a year and a half earlier,” said Harold D’Souza, cofounder and director at executive search firm WalkWater Talent Advisors.
D’Souza added that most of the current hiring is driven by strong reasons such as replacement, business growth, profit increase, or adding new business areas necessary for company growth. There's no experimental hiring; it is focused on business growth and profitability, which is beneficial for the overall industry.
Vaibhav Parchure, partner at startup hiring firm MetaMorph, noted that senior-level executives are increasingly moving to start their own ventures or to companies in the growth stage, as these companies recognise the need to hire senior, veteran leaders to achieve profitability and attract investments.
“Founders and companies are now looking for leaders even from a different industry to bring that sort of experience, the industry know-how, network and overall leadership experience. It is happening across the startup scene, and this is the reason why we are seeing a lot of movements,” Parchure said.
