SoftBank which backed digital wallet Freecharge could soon be sold for as low as $150-200 million. This value is Just 50 percent of what FreeCharge is worth.
A per reports Alibaba-owned Paytm is one of the frontrunners to buy the mobile wallet platform owned by Snapdeal .The report also adds that SoftBank’s priority at the moment, however, is to sort out the shareholder discord at Snapdeal and seal the deal with Flipkart; only then will FreeCharge be sold.
There is no confirmation on the same as no consensus could be reached on the sale proposal at Tuesday’s board meeting of Snapdeal.
Snapdeal’s parent company Jasper Infotech had bought FreeCharge two years back with a deal that worth $400 million, in a combination of cash and stock. In the last one year, Freecharge has approached many global payment majors like PayPal and PayU in order to raise fresh capital, but nothing came through.
“As these e-tailers have plans to sell financial products in the long term, such exclusivity agreements will help Paytm’s financial services business,” the source added.
According to sources, Paytm may spend around $150 million, with a condition of Freecharge providing them with exclusivity rights, wherein the Paytm becomes the sole payments option on e-commerce platforms like Snapdeal and Flipkart.
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Madhurima Goyal, From ITvoir News Desk