Snapdeal’s parent company of e-commerce platform, Jasper Infotech is looking to sell its payments wallet business FreeCharge. It is in talk with two wallet firms, Paytm and PayU; the size of the deal stands at an estimated $500 million.
Fresh talks started after a deal with PayPal fell through; PayPal wanted to acquire 51% of FreeCharge. The company, however, was looking to divest only 20-25%
In the case of Paytm, the deal is being brokered by SoftBank Group, which is also a significant investor in China’s Alibaba Group. It should be noted the Alibaba Group is the single largest investor in Paytm.
At the same time, Snapdeal is in talks with Naspers to sell the wallet business to PayU.
In September last year, PayU had acquired Citrus Pay in an all-cash deal, valuing the Indian start-up at $130 million.