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In today’s newsletter: 

• VSS dials former execs to rebuild Paytm amid layoffs
• New age firms' top bosses strike it rich
• Ola-Uber faces a new challenger in B'luru

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In a move reminiscent of the Avengers uniting, Paytm founder Vijay Shekhar Sharma is reuniting with his former lieutenants to strategise the company's revival.

Sharma has reached out to trusted former executives who played pivotal roles in Paytm's early growth spurt. 

• The CEO has been in touch with former CBO Renu Satti, COO Kiran Vasireddy, and associate vice president Nehul Malhotra to rejoin, sources told us

The company is also engaging with senior bankers to lead the high-growth lending vertical.

• Discussions have been held with IndusInd Bank’s Sai Giridhar for a potential role, per sources 

Paytm, however, denied reports on external hires, stating that the management is focusing on internal promotions.

Sharma's strategic move to reunite with former allies comes amidst pressure to recover lost business. 

• Murmurs of internal discord have also surfaced since Sharma’s close confidant Bhavesh Gupta stepped down over alleged “difference of opinion”

Sharma’s direct control over verticals, once held by Gupta, has prompted a major overhaul of teams.

In another development, Paytm has laid off an undisclosed number of employees as part of its restructuring plan announced in May.

• Paytm claims that it is actively working to provide outplacement support to affected employees

Find out more

Regardless of a company's financial performance, regulatory hurdles, or stock price woes, new-age firms continue to shower their top executives with exorbitant compensation.

Listed new-age companies spent hundreds of crores by way of remuneration for their top brass in FY24.

• Paytm, mired in regulatory problems, paid its key managerial personnel (KMPs) about Rs 1,149 crore in FY24, despite a 37% plunge in its stock price

• Zomato CEO Deepinder Goyal and CFO Akshant Goyal’s stock options cost the company Rs 169 crore

• Four of Policybazaar’s top bosses took home Rs 201 crore during the period

• Seven of Delhivery’s honchos were paid Rs 165 crore for the financial year, led by CEO Sahil Barua at Rs 66 crore

As employee stock options (ESOPs) made up most of these executives’ large packages, it turns out that they were responsible for a disproportionate part of the companies’ share-based payment costs.

• While 78% of Paytm's total ESOP cost of Rs 1,466 crore was due to top brass in FY24, this share was 77% in the preceding fiscal

• Zomato’s CEO and CFO accounted for 33% of the company’s stock option expenses in FY24, down from 74% in FY23

However, new-age companies like Nykaa and Mamaearth, led by promoters, don't have the burden of high ESOP costs. So, their payouts are much lower.

• Nykaa founder Falguni Nayar was remunerated Rs 8.7 crore in FY24, whereas top executives Anchit Nayar and Adwaita Nayar each took home Rs 4.3 crore. 

• Mamaearth co-founders Varun Alagh and Ghazal Alagh received Rs 3.5 crore and Rs 1.8 crore, respectively

Go deeper

While rains may make finding an auto a struggle in Bengaluru (even with apps!), another ride-hailing service has entered the market.

The city's auto-rickshaw scene is heating up with the launch of a new app, Nagara Metered Auto, by the Karnataka Rajya Chalakara Parishath (KRCP) in collaboration with Agnibhu Technologies.

What’s new?

• The app allows passengers to book rides in three ways: on the street, through their website, or even via WhatsApp 

• Fares are displayed clearly on the meter, and passengers pay the government-fixed rates directly to the drivers using cash or UPI

In a move to combat the dominance of Ola and Uber, and eliminate hefty commissions, auto unions are launching their own app services. 

• Nagara Metered Auto isn't the first – the Auto Rickshaw Drivers Union (ARDU) in collaboration with Juspay launched Namma Yatri in November 2022

• Peace Auto Union in partnership with a mobility firm launched an app called Rook in 2022 (although it's no longer functional)

Go deeper

• The IMF's deputy chief, Gita Gopinath, warned that AI's true economic and financial risks may only emerge during a downturn, amplifying the next recession if not addressed beforehand.
  
  
• Nearly 90% of Indian company leaders are exploring AI-powered content creation tools, according to Canva's Visual Economy report.

Lights, camera, action...well, maybe not so much action on the screen front. India's box office is buzzing, but the number of theatres just isn't keeping pace.  

• Multiplexes are adding screens, but mostly replacing those lost during the pandemic

Plus, many cinemas are closing due to low footfalls and expensive real estate Find out more

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