Jasper Infotech, the parent company of e-commerce platform Snapdeal, is is in talks with two wallet firms — Paytm and PayU — as it looks to sell its payments wallet business Freecharge, said an employee of the company on condition of anonymity, he size of the deal is estimated to be $500 million.
“Fresh talks started after the company’s deal with PayPal fell through. PayPal wanted to acquire a controlling stake of 51% in Freecharge. However, SoftBank Group, which is the largest shareholder in Snapdeal, was interested to divest only 20-25%,” said the source close to development.
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.
PayU is part of South Africa-based internet and media conglomerate Naspers, which is one of the largest technology investors in the world. Founded in August 2010 by Kunal Shah and Sandeep Tandon, Freecharge was acquired by Snapdeal in April last year for roughly $450 million.