Japser Infotech which runs the e-commerce platform Snapdeal is understood to have received a definitive agreement from Alibaba backed One97 Communications which operates Paytm to acquire the former’s payment wallet business Freecharge, said sources close to the development.
Sources explained that the size of the deal is believed to be valued at $50 million, adding that both the parties have understood to have initiated discussion related to share purchase.
It is believed that Snapdeal first approached Paytm for the sale of Freecharge in February this year, after its talks with PayPal fell through. However, with conversations not leading into any conclusion, the company in the last few months is understood to have tried to struck a deal with other players including MobiKwik, Bank of Baroda, amongst others.
Denying the above report, a Freecharge spokersperson said, “Freecharge is currently engaged with multiple interested parties and expects to conclude a deal in the near future.”
Early this month, SoftBank at its annual earnings call said it had incurred losses of $1.4 billion (¥160.419 billion) on investments in e-commerce player Snapdeal and taxi aggregator Ola in the period to March 2017.