Online marketplace Snapdeal is in talks with US online payment system PayPal to sell Freecharge.
The deal would value the online recharge company at around $500 million, compared with the $400 million that Snapdeal paid for it in 2015.
According to the sources, it is said that "This will free up to a great deal Snapdeal’s desperate need for funds at a time when investors are not willing to put money into its business."
Snapdeal's parent Jasper Infotech has been in negotiations for over 18 months with multiple investors both, strategic and financial to raise $150-300 million in fresh capital for its digital payments platform. However, the company is yet to close the round.
A Snapdeal spokesperson said in an email: "We deny all such speculations." Paypal and Free charge also declined to comment on the matter, dismissing it as speculation.
PayPal has about 192 million customers in more than 200 markets across the world. Though it has no domestic product in India, local merchants can sell overseas through PayPal.
Outside of San Jose, the company's biggest tech workforce is in India with a combined strength of 1,300 employees in Bengaluru and Chennai.
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