NEW DELHI: Lava International is undergoing a major leadership reshuffle, with co-founder Hari Om Rai returning as managing director (MD) after Sunil Raina’s resignation. Chief Financial Officer (CFO) Rajesh Sethi has also decided to step down, as the company explores fresh capital and growth opportunities to strengthen its position in India’s competitive smartphone market.

According to media reports, Rai returned to the MD role earlier in October, while Raina and Sethi are serving their notice periods and are expected to leave by the end of December 2026.

Raina is reportedly leaving to explore business opportunities outside Lava. The company has not publicly attributed his departure to underperformance, and the leadership changes come amid a broader effort to revive business growth and secure additional funding.

Rai co-founded Lava International in 2009 alongside Sunil Bhalla, Shailendra Nath Rai and Vishal Sehgal. He played a key role in building the Indian handset brand and expanding its presence in international markets before stepping down from the MD position in 2023.

Raina took over as interim MD in November 2023 following Rai’s arrest by the Enforcement Directorate in a money-laundering investigation linked to Vivo India. He was subsequently appointed to lead the company as it sought to rebuild its smartphone business.

Raina joined Lava in 2010 as vice-president and chief marketing officer and went on to hold several senior leadership positions. His departure marks the end of a long association with the handset maker.

Sethi’s exit adds to the senior-level changes at the company. The departures follow the earlier exit of Sanjeev Agarwal, Lava’s former executive director and chief manufacturing officer, who joined Micron Technology India.

Lava is exploring ways to raise approximately Rs. 500–600 crore to support expansion and potentially restructure part of its debt, according to media reports. The company has also reportedly been in discussions with potential investors, including promoters of electronics manufacturers Dixon Technologies and Amber Enterprises in their personal capacities.

The company is seeking to strengthen its presence in the sub-Rs. 20,000 smartphone segment, where rising component costs and changing strategies among Chinese manufacturers could create opportunities for domestic brands.

Lava has also been looking to expand its product portfolio, manufacturing capabilities and market reach. Its recent participation in large government procurement opportunities, including a tender for 25 lakh tablets in Uttar Pradesh that it shared with Acer, underscores the importance of institutional business alongside consumer smartphone sales.

Despite its ambitions, Lava faces stiff competition from established brands with greater distribution reach, marketing budgets and product portfolios. Its ability to secure fresh capital, launch competitive devices and expand its market share will be important to its next phase of growth.