Sunday , February 17 2019

Softbank may sell Freecharge at 50% discount for $200 million to PayTM

FreeCharge for sale

The Mobile Wallet firm Freecharge is up for sale for as low as $150 -$200 million.

Reports say that the Softbank backed digital wallet Freecharge is up for sale for as low as $150-$200 million.

Freecharge is an E-commerce website in India which provides online recharging facility for the users. It may be of Postpaid, Prepaid, DTH and data cards. The mobile wallet is owned by Snapdeal and it is up for sale and the Softbank may sell it to the Paytm, if both the parties agrees to the contract , sources said.

SoftBank is re-working to sort out the shareholders disagreement at Snapdeal and get a toehold in Flipkart, after which it will finalise the sale of Freecharge.

Two year bank the e- wallet mobile platform was brought by Jasper Infotech which is Snapdeal Parents’s for $400 million in a combination of cash and stock.

From the past few years, the E-wallet firm was in talks with major global payment companies like PayPal and payU in order to raise a new fresh capital but it didn’t worked out.

The Softbank which is Japanese multinational telecommunications and Internet Corporation is working for the sale of snapdeal e-commerce platform and a final decision will be made in the next few weeks.

According to the reports, an agreement was not reached for the proposal at the Board meeting of Snapdeal, where the Softbank has a significant stake and board representation and working to get support from other directors.

Sources indicate that the PayTm CEO Vijay Shekhar Sharma SoftBank was approached by SoftBank few months back when Jasper Infotech was seeking a value of at least $500 million for Freecharge.

“A lot has changed with both Snapdeal and Freecharge in the last quarter. Paytm is interested in Freecharge but only if the math is reworked. It also wants exclusive rights along with the deal to become the sole payments platform for Flipkart and Snapdeal,” a person privy to the matter told reporters.

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Even the Flipkart-owned PhonePe enables UPI transactions, was in talks with the investors like PayPal for an independent funding.

Sources said PayTm may look to pay around $150 million, provided Freecharge comes with exclusivity rights, wherein the PayTM becomes the sole payments option on platforms like Snapdeal and Flipkart.

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